U.S. Treasury Looking for Escape Routes to Avoid Default

Time is running out on the Aug. 2 deadline for Congress to raise the U.S. $14.3-trillion debt ceiling.

The U.S. Treasury is debating ways to circumvent a default if Congress doesn't agree to raise the country's debt limit by Aug. 2. The talks, helmed by Treasury Secretary Timothy Geithner and Assistant Secretary for Financial Markets Mary Miller, have examined whether they can find a way to delay debt repayments or if President Barack Obama has the constitutional authority to simply ignore Congress on the matter. The U.S. takes on $125 billion a month in debt, but is also beholden to a $14.3-trillion debt ceiling. If Congress doesn't agree to raise that ceiling by some $2 trillion, the U.S. could face a financial collapse as soon as next month.