U.S. Hits Debt Limit After Senators Put Off Raising Ceiling

Fri Oct 15, 2:46 AM ET

By Jonathan Weisman, Washington Post Staff Writer

The federal government reached its $7.4 trillion debt ceiling yesterday, forcing Treasury Secretary John W. Snow to delay contributing to one of the federal employees' pension systems to avoid running out of cash and possibly defaulting on government debt.

The situation will probably be temporary, as it has in the past. Congressional leaders said that when they return for a lame-duck session after the election, they will raise the debt ceiling to allow the government to borrow the money it needs to pay its bills. At that point, any overdue contributions to the pension fund would be paid, with interest.

Snow has pleaded with Congress since Aug. 2 to raise the debt limit, but Senate Republican leaders -- whose aides said they were worried about the possible political backlash -- adjourned for the campaign this week without acting on Snow's request. The Treasury secretary repeated his plea yesterday in a letter to Senate Majority Leader Bill Frist (R-Tenn.), appealing to his "commitment to maintaining the full faith and credit of the U.S. government."

And in the Iraq Invasion, failing to learn from lessons past:

U.S. Orders Freeze on Zarqawi Network Assets

WASHINGTON (Reuters) - The United States on Friday ordered a freeze on assets of the militant group led by Jordanian Abu Musab al-Zarqawi, which has claimed responsibility for a series of bombings, kidnappings and beheadings in Iraq.

The Treasury Department's Office of Foreign Assets Control added Zarqawi's Tawhid and Jihad group to its list of suspected terrorists and terrorism financiers.

The move, which came a day after Britain ordered banks to seek out and freeze any assets of the group, blocks any accounts, funds and assets of Tawhid and Jihad in the United States.

Now they put on an asset freeze?!? It should've been in place immediately after the first act of violence. This is a stupid as not closing the borders after the invasion. Again the Bush Administration shows its complete incompetence at anything other than blowing things up.