, which forced the Treasury Department to begin taking so-called "extraordinary measures" to continue paying the government's bills.that these short-term moves, including suspending reinvestment in the workplace retirement plan for federal employees, could allow the government to pay its obligations until June, after which the U.S. would be in danger of defaulting on its debt.
Raising this limit would allow the government to borrow more to cover spending already approved by Congress. Failure to raise the ceiling would mean the government would eventually fail to pay back its debts, including interest payments on Treasury bonds — technically putting the U.S. government in default.In political limbo. Republicans in the House of Representatives say they won't agree to raise the limit unless the Biden administration agrees to cuts in spending.
However, shakiness in U.S. creditworthiness could result in some market turmoil, like in 2011 when the U.S. faced a debt ceiling crisis and received a downgrade in its credit rating. However, any U.S. default would result from a political decision rather than an economic imperative. Since the U.S. debt is in dollars, "we can pay it back by printing more dollars," says McMillan.The answer is yes. Aside from stock market volatility, you'd see ramifications across the economy. Any ding in the U.S. credit rating would likely raise rates on other types of debt, such as mortgages and auto loans, to account for additional risk.
MakeIt I am broke - does it matter?
MakeIt It means nothing
MakeIt Yawn, and the sky is not falling.
MakeIt What it means is you should own physical gold/silver
MakeIt 🤡