#us debt ceiling

[jbfly46]

Sue the U.S. Treasury via the Federal Tort Claims Act for negligence in not doing their due diligence when distributing COVID-19 economic relief.

[apacentrepreneur-blog]

What is US Debt Ceiling and what it means for the US economy

From the last few years, you might have heard of a few scary predictions such as “The US debt ceiling may not be raised” or “USA may stop paying its bills completely”. Fortunately for the world, nothing of such has happened yet, however, it is important to understand what exactly the debt ceiling is, how it is determined, and why it is so important that not only the USA but the world is worried about it.

We have to understand that the United States Debt ceiling is a crucial aspect of the country’s financial system and plays an important role in its economic stability. The debt ceiling represents the maximum amount of debt that the US government can legally borrow to meet its financial obligations.

The debt ceiling is set by the US Congress and serves as a limit on the total amount of outstanding debt that the government can accommodate.

Let’s discuss in detail the debt ceiling and why it is important.

What is the Debt Ceiling?

The US debt ceiling refers to a legal limit set by the United States Congress on the total amount of debt that the federal government can accumulate. It represents the maximum level of outstanding debt that the US Treasury Department can issue to fund government expenditure.

Since the USA spends more than it earns, it needs to borrow to narrow down the gap, and considering the size of the US economy and its $25 trillion GDP, the size of the spending and borrowings is obviously multiple of the other countries.

The debt ceiling was hit by the US government on 19th January 2023 and now it has reached a stage when it needs this debt ceiling revised upwards to enable the government to continue paying its bills at the correct time.

Usually, when the debt ceiling is reached, the Federal government uses “Extraordinary measures” to ensure that the regular bills are paid on time.

What will happen once the Debt Ceiling is Hit?

Firstly, if the debt ceiling hits, the government cannot seek higher borrowing limits. Government starts using other measures such as curbing capital investments so that the routine expenses can be paid and only once that option is exhausted, the government tries to seek approval for the enhancement of the debt ceiling.

Such extraordinary measures can help the government to pay the bills for only a few months but once the cash runs out, the government needs to get a higher debt ceiling approved and in the absence of such approvals, the government cannot issue new debt to pay its bills.

As a result, the government can end up defaulting on its own debt if it is unable to make the required payments to its bondholders. Such a scenario is not only catastrophic for the US economy but also will have adverse effects on the global economy.

What Does Raising the Debt ceiling mean?

The raising of the debt ceiling is often directed at signaling that the government can spend more. The raising of the debt ceiling does not authorize any fresh spending, and that is something that the US Congress must authorize under the Constitution.

The debt limit concept was first proposed in the 20th century with the intention of ensuring that the Treasury does not need to request approval but is instead given unconditional approval up until the limit is breached.

The debt ceiling only authorizes spending money on programs that are already approved, so the idea of spending cuts may not be too valid as that is not the intent of the US debt ceiling anyway.

It has been 5 months since the debt ceiling was breached, and since then, the US government has been surviving on extraordinary measures that meet expenses.

How much debt does the United States of America have, and what does it mean?

The national debt of the country crosses $31 trillion in the year 2022 and the borrowing cap is set at $31.381 trillion US dollars unfortunately, that level was breached in January 2023 itself. Since then, the government has taken extraordinary measures to run the government, but it has been declared that they cannot continue running it after the month of June.

The concept of a debt ceiling was introduced as an emergency policy measure during World War II. The debt ceiling was introduced as a convenient measure so that the treasury does not have to seek approval each time.

Let us assume that if the concept of debt ceiling loses its meaning, it is entirely likely that it would lose its value and it will be abolished. For now, US debt is a concern for not only the US government but the world government as well as the debt is so large that it has the power to rattle the world economy, even with a minor gyration.

In summary, the US debt ceiling serves as a critical mechanism for controlling government spending, safeguarding the nation’s creditworthiness, and ensuring fiscal responsibility. It plays a very important role in maintaining economic stability and managing the country’s debt levels. Understanding the importance of the debt ceiling is crucial for economists, policymakers, and citizens alike.

[pavel-nosok]

Crypto Inches Bit Higher As US Senate Agrees to Raise Debt Ceiling, What’s Ahead? | Coingape

On Thursday, the U.S. Senate finally passed the bipartisan legislation to raise the US debt ceiling further from $31.4 trillion, thereby averting the possibility of a default. The Senate voted 63-36 to approve the bill. On Thursday, Senate Majority Leader Chuck Schumer said: “We are avoiding default tonight”. Furthermore, President Joe Biden added: “This bipartisan The post Crypto Inches Bit…

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[cinefilmeshd]

Oil prices to remain in mid-70s range for next six months: Vandana Hari

“Basically, what we are seeing right now is, as I mentioned, headwinds on the economic front, so the US debt ceiling drama was one of those,” says Vandana Hari, Vanda Insights.Just wanted to begin with by understanding what is really ailing the oil prices at this point of time. Of course, there is that demand concern coming in from China. At the same time, the supply continues to be on the higher…

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[o-the-mts]

Alexandria Ocasio-Cortez says she will vote against US debt ceiling deal

Democratic congresswoman confirms she will not support agreement to raise debt ceiling and avoid 5 June default

It’s nice that there are still a few Democrats left who don’t think it’s their responsibility to cave in to the white supremacist insurrectionist party. 

[sofiadragon]

Not so gentle reminder that the US debt ceiling only started to be a political crisis in 1995.

This happened when Republicans decided that taking our country's reputation as a responsible nation that pays it's debts hostage was acceptable, politicizing an oversight procedure.

The recurring "debt ceiling crisis" is only 28 years old. The debt ceiling was made in 1917, to automate the creation of bonds and other debt to a certain point. It was completely apolitical, just paying the bills for the budget that had been passed, and functioned as a looser oversight of the treasury than the previous system of approving each individual action. WWI certainly facored into the reasoning, as congress had lots of things that needed done. Even with everything going on between 1917 and 1995, we never had a debt ceiling crisis. We always hashed out the budget with debates about the budget and dealt with oversight of the treasury as a simple matter of balancing the checkbook. Raising the debt ceiling is just looking at what was spent and saying "that matches the budget we approved, carry on." Maybe congress is just super busy these days? Pew Research has a handy chart to check!

Even if you don't agree with their idea of what is and isn't ceremonial, the answer is no. We have plenty of time to bring up budget concerns as budget concerns and no need to hijack this procedural oversight function or take hostage the full faith and credit of the United States.

[pavel-nosok]

Bitcoin (BTC) Price Jumps 3.5% As US Prepares to Raise Debt Ceiling | Coingape

In the early morning trade of the Asian hours on Monday, May 29, Bitcoin (BTC) made a swift move to the north jumping by more than 3.5%. This happens as the US prepares to raise the debt ceiling further from the current $31.4 trillion. As of press time, Bitcoin (BTC) is trading 3.5% up at The post Bitcoin (BTC) Price Jumps 3.5% As US Prepares to Raise Debt Ceiling appeared first on CoinGape.

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[cinefilmeshd]

US debt ceiling: Treasury could run out of money by June 5, says Janet Yellen - Cinefilmeshd

Treasury Secretary Janet Yellen on Friday told Congress that the US may default on its debt obligations by June 5, four days later than the earlier projection, if lawmakers do not come to a resolution for the federal debt ceiling. According to CNBC US report, in a letter to House Speaker Kevin McCarthy, Yellen highlighted: “Based on the most recent data available, we now estimate that the…

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