"The debt limit—commonly referred to as the debt
ceiling—is the maximum amount of debt that the
Department of the Treasury can issue to the public and to
other federal agencies. That amount is set by law and has
been increased over the years in order to finance the government’s
operations. In March, the debt ceiling was
reached, and the Secretary of the Treasury announced a
“debt issuance suspension period.” During such a period,
existing statutes allow the Treasury to take a number of
“extraordinary measures” to borrow additional funds without
breaching the debt ceiling. The Congressional Budget
Office projects that if the debt limit remains unchanged,
those measures will be exhausted and the Treasury will run
out of cash between mid-November and early December.1
At such time, the government would be unable to fully pay
its obligations, a development that would lead to delays
of payments for government activities, a default on the
government’s debt obligations, or both..."
Federal debt
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment