Posted on Jan 23, 2023
Why we have a debt ceiling, and why this trip to the brink may be different
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https://www.npr.org/2023/01/21/ [login to see] /debt-ceiling-explainer
"Don't stop me, even if you've heard this one.
The debt limit is back. Congress is having another moment.
And this particular round of wrestling over the issue could carry the ugliest economic consequences yet.
The U.S. government technically ran out of money to meet its myriad obligations on Thursday. Everyone is still getting paid, for now, because the Treasury can use what it calls "extraordinary measures" to move government assets around and provide cash.
But by summer, if not sooner, cash will not be available to repay bond holders and other creditors for the loans that have already come due. Nor will there be cash to pay the military, or the millions of other federal employees and pensioners, or the beneficiaries of Social Security, Medicare, Medicaid and other entitlement programs. And that's just the payroll, leaving aside all the purchases and contract work.
That adds up to an awful lot of unpaid and unhappy people — but that's not the only reason defaulting on the debt has historically been regarded as unthinkable. If the U.S. were to default, all those unpaid creditors would be under pressure from their own creditors, setting off reverberations in credit markets worldwide"
"Don't stop me, even if you've heard this one.
The debt limit is back. Congress is having another moment.
And this particular round of wrestling over the issue could carry the ugliest economic consequences yet.
The U.S. government technically ran out of money to meet its myriad obligations on Thursday. Everyone is still getting paid, for now, because the Treasury can use what it calls "extraordinary measures" to move government assets around and provide cash.
But by summer, if not sooner, cash will not be available to repay bond holders and other creditors for the loans that have already come due. Nor will there be cash to pay the military, or the millions of other federal employees and pensioners, or the beneficiaries of Social Security, Medicare, Medicaid and other entitlement programs. And that's just the payroll, leaving aside all the purchases and contract work.
That adds up to an awful lot of unpaid and unhappy people — but that's not the only reason defaulting on the debt has historically been regarded as unthinkable. If the U.S. were to default, all those unpaid creditors would be under pressure from their own creditors, setting off reverberations in credit markets worldwide"
Why we have a debt ceiling, and why this trip to the brink may be different
Posted from npr.org
Economics
Government
Congress
Republicans
Posted 2 y ago
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SGT Charlie Lee good day Brother Charlie, always informational and of the most interesting. Thanks for sharing, have a blessed day!
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So, do they kick the ball down the road for someone else to deal with or do they deal with it --- everyone knows the answer already.
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Ok before we throw politics into this and people get all stupid you should at least have a few basic facts.
Q. Half of the debt is held in Trust for retirements.
A. Things like VA pensions and disability payments.
B. Military retirement.
C. Local governments.
Foreign ownership of US Debt is 7.5 Trillion out of the 31.41 trillion.
YOU AND I OWN THE REMAINING DEBT of 24 Trillion Dollars.
We default then banks fail.
We lose. Such an action will make the great depression look like easy street.
Our military will have to be reduced to nearly zero as we won't be able to afford the nearly multi trillion dollar yearly expense.
Q. Half of the debt is held in Trust for retirements.
A. Things like VA pensions and disability payments.
B. Military retirement.
C. Local governments.
Foreign ownership of US Debt is 7.5 Trillion out of the 31.41 trillion.
YOU AND I OWN THE REMAINING DEBT of 24 Trillion Dollars.
We default then banks fail.
We lose. Such an action will make the great depression look like easy street.
Our military will have to be reduced to nearly zero as we won't be able to afford the nearly multi trillion dollar yearly expense.
(2)
(0)
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