New study warns of US long-term debt problems

WASHINGTON (AP) — The government could run out of cash to pay its bills in full and on time sometime between the end of October and the middle of November if lawmakers fail to increase its $16.7 trillion borrowing cap, Congressional Budget Office Director Doug Elmendorf said on Tuesday.

Elmendorf told reporters that the Treasury Department’s assessment that it’ll run out of borrowing authority and have just $50 billion cash on hand in mid-October “sounds plausible.”