US Congress may face another debt-limit showdown in 2013
WASHINGTON (REUTERS) - A United States (US) debt-ceiling increase could be headed for a Wall Street-rattling showdown in 2013 if Congress, as expected, shuns a quick and easy fix at the end of this year in favour of another round of last-minute brinkmanship.
Regardless of who wins the Nov 6 elections, many congressional aides and Capitol Hill observers are predicting that lawmakers will go right up to the deadline - probably around mid-February or early March - before increasing the US$16.4 trillion (S$20 trillion) limit on borrowing that is nearly exhausted.
While no one is certain of another 11th-hour fight in February or March, no one is ruling it out.
Without the bigger government credit card, the US Treasury Department no longer would be able to finance government operations, forcing widespread shutdowns and default on debt payments to creditors from China to England.