7 Things You Need To Know About The Debt Ceiling

7 Things You Need To Know About The Debt Ceiling

Congress must decide about raising the ceiling on how much debt the federal government may carry.

“The debt ceiling is a cap set by Congress on how much the federal government may have in outstanding debt.” “Raising the debt ceiling simply lets Treasury borrow the money it needs to pay all U.S. bills and other legal obligations in full and on time.”

“Raising the debt ceiling is more like a license to continue paying what the country owes.” If Congress does not raise the debt ceiling, it will cause a disruption in Washington and investors and other countries will lose confidence in the United States. “To pay bills and benefits in full and on time, Treasury must borrow money to make up the difference between what it spends and what it takes in.”

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