Nostra
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- Oct 7, 2019
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Link us up to the time the Gov hit the debt ceiling and stopped spending at that level.AI Overview
Learn more
The debt ceiling is the maximum amount of money the US government can borrow to pay its bills and fund programs. It's also known as the debt limit.
How it works
What happens if the debt ceiling is reached?
- Congress sets the debt ceiling.
- The Treasury can borrow up to the debt ceiling to pay bills and honor commitments made by Congress.
- Once the debt ceiling is reached, the government can't increase its debt.
- The Treasury can use temporary measures to borrow more for a short time.
- The government risks defaulting on its debts.
- The US credit rating could be lowered.
- Consumer confidence could be shaken.
- The stock market could fall.
- The US economy could enter a recession.
- Interest rates could rise.
Why is the debt ceiling important?
- It limits the amount of debt the government can take on.
- It prevents the government from authorizing new spending commitments.
GO!

