Tuesday, May 30, 2023

Could it go into default in the US? In the country of Jupiter there is no standard debt

The US Treasury said on Thursday that it had begun to take “extraordinary measures” to continue meeting its obligations related to debt maturities when the borrowing authority’s limit was reached.

Gentileza: @POTUS

The US Treasury said on Thursday that it had begun to take “extraordinary measures” to continue meeting its obligations related to debt maturities when the borrowing authority’s limit was reached.

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In a letter to the Republican Speaker of the House, Kevin McCarthy, Secretary of the Treasury Janet Yellen called on “reverently in Congress to act quickly to protect the full bailout of the United States” by raising the debt ceiling, which today is slightly above 31 trillion dollars.

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The US is hindering the financing of various social programs, although an increase in the debt ceiling also suggests less control over spending. The Biden administration is warning that unless Congress acts, the federal government will not be able to pay its bills by June.

What is the debt ceiling?

Every year since 2001, the US government has spent more than the revenue it generates through taxes and fees. The government borrows money to fill funding gaps so it can continue to pay for a variety of federal programs and agencies, from the military to Social Security to Medicare for retirees. The government raises this money by selling interest-bearing securities, such as treasury bonds.

The debt limit, or debt ceiling, is a federal law that sets the maximum amount of money the United States can borrow to meet these legal spending obligations.

Contrary to some public perceptions, raising the debt ceiling does not allow the government to spend more money. Congress has the ultimate authority over the budget process, and each year lawmakers vote on spending bills. But since 1917, a legal limit has also been set on the amount of debt the US government can take. The debt relief method simply allows the Treasury Department to pay expenses that Congress has already approved.

Can it go into default?

Raising the debt ceiling does not allow the government to spend more money. Congress has the ultimate authority over the budget process, and each year lawmakers vote on spending bills. But since 1917, a legal limit has also been set on the amount of debt the US government can take. The debt relief method simply allows the Treasury Department to pay expenses that Congress has already approved.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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