Oops! We’re not going broke on August 2nd after all.
It seems as though Secretary Geitner and President Obama were wrong. The United States will not default on August 2 after all. The 80 million checks can be issued as planned. Armageddon has been postponed for 8 days.
How did this happen? It seems that projecting government income and expenditures isn’t rocket science–it’s not science at all–it’s anybody’s guess. And Geitner guessed wrong by several billion dollars. Between July 14 through July 19, the federal government collected an extra $14 billion in tax revenues and spent $1 billion less than previously assumed. As a result the anticipated $2 billion shortfall expected by Geitner on August 2nd has been overcome. The government should now easily be able to meet its obligations, including a $22 billion social security payment due on August 3 which Obama said might not get paid. The additional revenue should in fact tide the government over until August 10–and beyond that date if the trend continues.
Stay tuned for further up-dates. Armageddon may not be August 10 either. Maybe we should consult Nostradamus to get the accurate date.