GEITHNER: US Will Hit Debt Ceiling On December 31

Treasury Secretary Tim Geithner warns that the U.S. will reach the statutory debt limit on Monday, December 31, reports Bloomberg.

This was communicated in a letter to Senate Majority Leader Harry Reid.

This timeline is basically in line with expectations.

Geithner writes that the Treasury will take extraordinary measures to make $200 billion of room under the limit, which should last two months in "normal circumstances."

In the previous debate over the debt ceiling, the Treasury also announced it would take similar extraordinary measures.

None of this is coming out of the blue.  Nevertheless, it reminds everyone that this is another problem that the U.S. needs to deal with.

Here's the first page of the letter.

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