Fiscal cliff talks approaching danger zone as Obama, Republicans meet over possible deal to intentionally default on New Years says US Treasury Secretary

US to reach debt limit on New Years Eve

The United States government will reach its statutory 16.39-trillion-dollar debt limit — a ceiling imposed by Congress — on Monday, Treasury Secretary Timothy Geithner said. In a letter Wednesday to Senate Majority Leader Harry Reid, Geithner said the treasury would take “extraordinary measures”. Oil prices jumped Wednesday as President Barack Obama headed back to Washington for a last-ditch attempt to secure a “fiscal cliff” deal with Republicans ahead of a year-end deadline. New York’s main contract, West Texas Intermediate (WTI) for February delivery, gained $2.37 to settle at $90.98 a barrel. Lawmakers are cutting their holiday vacations short as Congress is set to reconvene Thursday for Fiscal Cliff negotiations.