When Will the Treasury Run Out of Cash?

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Oct. 15 (Bloomberg) -- On "The Real Deal," Michael McKee examines the Treasury's cash balance. He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Flexibility on using the extraordinary measures.

It is unclear whether or not that means he would not accept this deal if it included that.

Thank you so much, our white house correspondent, julianna goldman.

It has been a lot of talk about u.s. default.

Mike mckee says that will not happen but next week is going to be a different story.

They have time to continue negotiations through this week.

You don't want to go through next week.

Thursday is the day they run out of borrowing authority and means you can only pay the bills with the cash you have on hand.

No one knows if they would have enough cash to pay.

The treasury's cash balance is rapidly being used up.

Some days revenue is higher than expenses paid there's no way to predict what those days will be.

I thursday the government should have $30 billion in cash left over.

They cannot borrow anymore.

What we are talking about is one that is used up.

That could happen as early as next week depending on how the bills flowing.

We know there are some big payments on the calendar.

Without some sort of extraordinary action, there is likely no way treasury can get as far as november 1. each day is going to be a cross your fingers event as we wait to see what bills and what revenue comes in.

The question is whether the markets are going to make it past thursday.

We have seen surges.

They cannot break the buck.

They have been selling those right after, particularly the three issues that mature before november 1. we do have bill auctions today.

We will see how they react to suggesting the deal.

Do those concerned spill over to the treasury and into equities?

Not an easy standoff.

It is not.

In other key date we are looking at is when the proposed temporary budget agreement, when that would run out.

That is all about sequestration.

If it runs through the first of the year, it will lock him in a round of spending cuts, most of that comes from defense.

Democrats hated the ham-handed way they have taken a meat cleaver to the budget the sea.

They like to negotiate changes to the sequester cap size.

Republicans like the result of lower government spending.

They do not want the changes, that is why they have continue negotiations.

Thank you, economics editor mike mckee.

Optimism continues to increase into stocks with futures pointing to a higher open.

Some are saying that stocks are

This text has been automatically generated. It may not be 100% accurate.


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