December 8, 2013  Understanding the Federal Debt Limit  It’s
Time To Raise and Reform the Statutory Debt Limit  I.
Introduction  Federal borrowing would currently be in excess of
the statutory debt limit of $16.669 trillion were it not for the
treasury department undertaking “extraordinary measures” in
order to postpone the date of a potential default. Secretary of
the Treasury Jack Lew has notified Congress that even the room
created by these measures will run out by October 17.
Projections by the Congressional Budget Office also show that
the debt limit will be exceeded some time between October 22-31.
Congressional consideration of a statutory increase is currently
in doubt, wrapped up in a debate, primarily among some
Republicans in Congress over 2014 appropriations and the future
of the Affordable Care Act (Obamacare).  There should be no
delay in voting to increase the debt limit. Despite its name,
the debt limit has never proven to be an effective means of
controlling debt. And yet, failure to raise t