#MintPrimer | On 1 May, treasury secretary Janet Yellen sent a letter to the US Congress saying that on 1 June the government is likely to run out of money.
With the government currently breaching its debt ceiling, the situation has become parlous.
Mint explains what’s… twitter.com/i/web/status/1…
#MintPrimer | There is a limit set to how much the US government can borrow to meet its legal obligations, which include paying interest on its debt and paying military salaries, tax refunds, and social security, etc.
Read here: livemint.com/news/world/us-…
#MintPrimer | Around the world, almost all governments spend more than they earn. This difference is known as the fiscal deficit and is financed through taking on debt.
Read here: livemint.com/news/world/us-…
#MintPrimer | The total US government debt to gross domestic product ratio was 63.85% in June 2008. It is now greater than 120%. #GDP is the measure of the size of any economy.
So, the US debt has almost doubled in 15 years.
Read here: livemint.com/news/world/us-…
#MintPrimer | The US Congress can permanently raise the debt ceiling or suspend it temporarily or allow the government to go past the debt ceiling without raising it.
Read here: livemint.com/news/world/us-…
#MintPrimer | If no consensus is reached before 1 June, the US government will end up defaulting on its legal obligations, leading to huge job losses in the US.
Read here: livemint.com/news/world/us-…
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