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US debt to increase !

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    Treasury acts to avoid hitting debt ceiling by Rex Nutting

    The Treasury will once again temporarily dip into two government employee pension funds to avoid exceeding the statutory debt ceiling of $5.95 trillion, Treasury Secretary Paul O'Neill said Tuesday. The government will also suspend sales of state and local government nonmarketable Treasurys. Borrowing from the G-Fund and the Civil Service Retirement and Disability Fund and canceling SLUGs could work until June 28, when the government must credit about $67 billion in interest payments to Social Security and other trust funds. O'Neill once again called on Congress to raise the debt limit without delay or conditions.

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