🇺🇸❓Is the US going to run out of money?
⚠️Washington has just 19 days to reach a deal or face a government shutdown.
Thread ⬇️
telegraph.co.uk/business/0/us-…
⚠️Washington has just 19 days to reach a deal or face a government shutdown.
Thread ⬇️
telegraph.co.uk/business/0/us-…
🔴US Treasury Secretary Janet Yellen revealed on Tuesday that, come October 18, she will exhaust her budgetary tricks keeping the lights on, as Congress is deadlocked by another impasse over raising the debt limit
💵Washington has, yet again, been hit by a debt ceiling standoff that runs the risk of a default on Treasuries, or US government debt…
⚠️The fiscal brinkmanship between the opposing Democrats and Republicans threatens to result in a government shutdown this week
⚠️The fiscal brinkmanship between the opposing Democrats and Republicans threatens to result in a government shutdown this week
🔴It later threatens a debt default that would send shockwaves through global financial markets
❓What is the debt ceiling?
The debt ceiling is the total limit on how much the US government is allowed to borrow.
America has been running large budget deficits in recent years and borrowed heavily during the pandemic, meaning that its debt pile has been expanding
The debt ceiling is the total limit on how much the US government is allowed to borrow.
America has been running large budget deficits in recent years and borrowed heavily during the pandemic, meaning that its debt pile has been expanding
❓What happens if deadlines are missed?
If lawmakers do not reach an agreement by the end of Thursday, a government shutdown will be triggered.
Essential government services would continue, but many would close and hundreds of thousands of federal workers would be furloughed
If lawmakers do not reach an agreement by the end of Thursday, a government shutdown will be triggered.
Essential government services would continue, but many would close and hundreds of thousands of federal workers would be furloughed
❓How can a default be prevented?
Congress must reach an agreement or experimental measures must be put in place to stop the crisis reaching that point
Congress must reach an agreement or experimental measures must be put in place to stop the crisis reaching that point
➡️If a partisan deal cannot be reached, a suspension or rise in the debt ceiling can be passed through a process known as budget reconciliation
❌But that will take time and is not guaranteed to work
❌But that will take time and is not guaranteed to work
❓Why does it keep coming to this?
A combination of a fixed debt limit and extreme partisanship in Washington means the US is constantly just around the corner from another funding crisis
A combination of a fixed debt limit and extreme partisanship in Washington means the US is constantly just around the corner from another funding crisis
🇺🇸The US has had multiple government shutdowns in the last decade, all ending with deals to stave off default
🔎Read more on how the US government is just 19 days away from running out of money here 👇
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