Geithner Taking 'Emergency' Debt Ceiling Measures
But gov't can now stay afloat til Aug. 2
By Kevin Spak,  Newser Staff
Posted May 3, 2011 9:17 AM CDT
You have this much more time to get a debt ceiling deal done.   (AP Photo/Mark Lennihan)

(Newser) – Tim Geithner is about to enact some “extraordinary measures” in anticipation of Congress’ failure to boost the debt ceiling by May 16, he wrote in a pointed open letter to John Boehner yesterday. These measures, coupled with “stronger than expected tax receipts” will allow him to stay afloat until Aug. 2, about 25 days longer than he estimated last month, according to the Washington Post.

“While this updated estimate in theory gives Congress additional time to complete work on the debt limit, I caution strongly against delaying action,” Geithner writes. “The economy is still in the early stages of recovery, and financial markets here and around the world are watching the United States closely.” Geithner’s “extraordinary measures” will include ceasing to issue securities to help state governments manage their budgets, and declaring a “debt issuance suspension period,” preventing several Treasury maneuvers.