Here’s a day you have to circle in your calendar: March 1, 2013.
Make sure you pre-block off all of your other social engagements, because you’re going to want to be around a computer and a TV.
First, that’s the day that the “sequestration” (mandatory spending cuts) go into effect.
But beyond that, it looks like that will also be the day that the debt ceiling hits, according to Goldman’s Alec Philips:
While the timing is always hard to predict, at this point it appears that the Treasury will exhaust its financing capacity by March 1, when it must make a number of large monthly payments, particularly related to Social Security and Medicare. Congress will need to raise the debt limit by that point if it has not already. While a failure to raise the debt limit should not have implications for the Treasury’s ability to make interest payments or to redeem existing securities, it could lead to a sharp reduction in spending, including fiscal transfers to individuals, payments to contractors, and payment of tax refunds which tend to be fairly heavy during this period.
The clock is ticking. Oh, and Goldman thinks this debt ceiling fight will be worse than the last one >
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