Yet again the Treasury Department is sounding another alarm to alert Americans that the US will hit its borrowing limit this fall. According to Jack Lew, congress must urgently do all it can to protect America’s sound credit profile. However congress is not slated to reconvene until early September, therefore leaving just three weeks to pass a budget. That said, these types of sirens are being recognized for what they have become: more commonplace than emergency. The US economy is on much firmer footing, experiencing reasonable growth and a declining budget deficit, which is now only 4.2% of GDP versus 10% in 2009. When congress resumes, it is expected that Republicans will demand spending cuts in excess of the increase in the debt ceiling.

Related article: http://www.bloomberg.com/news/2013-08-27/don-t-worry-too-much-about-the-debt-ceiling.html