Debt limit brinkmanship 'dangerous'

Written By Unknown on Kamis, 10 Oktober 2013 | 20.24

10 October 2013 Last updated at 09:02 ET

US Treasury Secretary Jack Lew has warned that pushing talks over the debt ceiling to the last minute could be "very dangerous".

He said that the US government could suddenly run out of money some time after 17 October, which would have "serious" repercussions.

He also warned that the Treasury's payment systems were not designed to work with no funds for payment.

According to Mr Lew that would make it difficult to prioritise payments.

The current debt limit of $16.699 trillion was reached in May.

Since then the US Treasury has been using what are called extraordinary measures to keep paying the bills, but those measures run out on 17 October.

In his testimony before the Senate Finance Committee, Mr Lew said that the Treasury had big bills to pay soon after that date, including to hospitals and doctors under the Medicare scheme, to Social Security recipients, veterans and members of the armed forces.


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