What is the debt ceiling?

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As America’s government hits the debt ceiling, US politics has become a multi-trillion dollar game of chicken. If neither side backs down, America could default on its debts for the first time in history, sparking global economic turmoil. What is the debt ceiling, and how can this crisis be resolved?

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To read more of our covering on the US economy: https://econ.st/3pyttGT

There is no easy escape from America’s debt-ceiling mess: https://econ.st/3I3Cyh5

Investors brace for a painful crash into America’s debt-ceiling: https://econ.st/3VZueon

What is the debt ceiling?: https://econ.st/3pytIlh

America faces a debt nightmare: https://econ.st/3BkzDx0

Republicans are right that federal budgeting is a joke: https://econ.st/3HZ0Hp2

Comments

Ryan H. says:

Average people wont know until all gov offices closed shop due to no salary.

Rochelle Trembly says:

Every day we encounter novel challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

lhpoetry says:

This is based on the assumption that the US government has the right to use our taxes to pay interest on loans and can't balance a checkbook.

Fuk Off says:

Ghost of a fighter pilot lost in action and never buried

Clayton Gelles says:

WHEN EVERYONE IS IN A STATE OF CONFUSION
THERE WILL ALWAYS BE A VERY IMPORTANT [KEY] APPEARING
WHETHER IT IS A NOBLE PERSON OR A LOW EBB EXPERIENCE BUT IN CONCLUSION
WILLINGNESS TO CHANGE WILL LEAD TO A BETTER DIRECTION

Bilo Rutherford says:

Funny to watch.

Leon Donald says:

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

A. M. says:

This guy is a politician

simon fes says:

This year has been uncertain, I've been in the red but playing the long term game, so I'm not worried. Jim Cramer mentioned there are still great opportunities to make a killing and I also watched a news emphasizing on what possible strategies expert investors apply in making millions amidst crisis. I'll do everything to save my dipping portfolio $242k at the moment.

Diana Rabbani says:

Retiring in 20 years? Due to inflation, you may need upwards of $2.6 million to maintain your existing lifestyle, with the ongoing effects of high inflation, lower forecasted stock market returns, and stagnant wages, achieving a secure early retirement could be more challenging than ever before

Riggs Nicole says:

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.

hughmcmanus says:

Here’s a sobering thought. In October 1981, the national debt reached $1 trillion. The average starting salary was $22,000. Those entering the workforce in 1981 are now retiring, have retired or are about to retire. If their salary kept pace with the debt, they’d earn about $660,000 in the last year of work: much higher than today’s average salary at retirement. If things continue, there will be a catastrophic ending to this story: it’s not that the recent agreement avoids a catastrophe; it’s delaying it and perhaps making a much worse ending to this saga a possibility.

jimmyboy1582 says:

Why can’t we make it $100 trillion? It seems that we could just lean on the zero key.

Elyon says:

THE UNITED STATES INC. is insolvent!
FRN’s / paper Monopoly money is Treason against the Constitution for the united States stationed at North America.

Let that company fall!

Leo Malino says:

Wait what? I thought its the greatest country in the World :O

Leo Malino says:

Isnt there this nice rule for the US that the debt doesnt matter when they are in war ?

Peter Lynch says:

Probably way too late for any possible remedy solution, now is the time to brace for the inevitable financial impact.

Jorma Jorvinen says:

In a economy that uses a non-convertable (currency which is not tied to gold) floating exchange rate currency, the public debt of the country is there to tell you the exact number of how much money has been legally put into circulation. In other words how much currency everyone else owns except the government. Its totally ridiculous to even pay attention to the public debt and its ceiling in such a system. They should direct all this attention to inflation and private sector debt, which are real problems. The public debt is just a number nothing more nothing less.

ALEX CIOCCA says:

Who needs money ? Not big government they just pass something and it appears just like dark matter. There I just solved two problems the next Einstein

Cory Hoggatt says:

Pure propaganda. The fastest route to financial disaster is continuing to spend as if other will keep lending us money forever.

Jay says:

Print print print inflate inflate inflate

Est02 says:

If it was a politically motivated reason behind the passing of the debt ceiling into congress, why dont they just scrap it off? At some point in the future, as the economy grows so too will the debt… which requires another raising of debt ceiling in order to avoid going default…..do enlighten me if im wrong

Kayla Wood says:

All signs point to 2023 being a year of significant economic hardship for the entire nation. Put your cash to use straight away to increase its value. I was aware that I needed to invest. I had no idea how quickly a few thousand dollars a month would go up. Though it is. Since 2020, I've made about $600,000.

StiLLblu???? says:

Borrow from who?!?

Federico Munoz says:

How does a nation pay off debt?????

BagsPalette says:

Because US spending on military to provoke wars in other regions while China spends on its infrastructure to build better lives for its people.

AustinBWH says:

Easy fix- hold all government paychecks until the budget is figured out.

Kaj Te Briga says:

USA is so full of s***

Big Artie B says:

It must be nice to get a credit limit increase every time you need it. Visa/Mastercard always caps me. Hmm

Firoze Bukht says:

US economy always be on the same pattern to maintain the supremacy.

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