US debt has already passed the $14trillion mark this Wednesday, which puts the country only $300 billion away from the $14.294 trillion debt ceiling. The debt ceiling is a cap on how much the federal government can legally borrow. Whether or not to raise the debt ceiling is still in debate. The Treasury Department estimates that between March 31 and May 16, the debt will reach the cap. If the US reaches the debt ceiling and the lawmakers are unable to raise the ceiling by that time, the Treasury would be prohibited from borrowing more money, and the result will be disastrous. Not only the US will be greatly affected, the international market will also be hit.
2 comments:
It will be interesting to see how everything works out with the debt situation- on all levels of the U.S. --> federal, state and local level, are all having issues financially.
I agree. It should provide an interesting show of close interaction between politics and the economy, and test the new make-up of Congress. Although not ideal, for the time being I believe it will be a necessary evil to raise the ceiling because it is necessary simply to keep ourselves afloat and prevent extensive damage to the world economy.
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