Treasury Department Warns Economy Could Take Plunge - Northern Michigan's News Leader

Treasury Department Warns Economy Could Take Plunge

Posted: Updated:

WASHINGTON (AP) -- The U.S. Treasury Department is warning that the economy could soon plunge.  

They are saying if Congress doesn't raise the debt ceiling soon, the country could default on debt obligations.

The Treasury went as far as saying the consequences could be worse than the Great Depression, freezing the nation's credit markets, and triggering inflation.

The debt ceiling will be reached by October 17th, after that the government will have about $30 billion of cash on hand.