Thread by @ItsThatCoolSoul

There's been much talk about the U.S. Debt Ceiling Crisis the past week. It's come to my attention many are aware about it, but don't know what it is.

🧵Let's explore what a DEBT CEILING actually is, its causes, options to resolve it, current actions, and future implications:👇

1/ The debt ceiling crisis is a political and economic crisis that occurs when the United States government reaches its maximum limit on how much money it can borrow. This limit is set by Congress, and it has been raised 78 times since 1960.

2/ The current debt ceiling is $31.4 trillion. The United States government has been running a budget deficit for many years. This means that the government is spending more money than it is receiving.

3/ The deficit has been growing in recent years, due to the COVID-19 pandemic and the economic stimulus measures that were taken to address it. When the government reaches its debt ceiling, it can no longer borrow money to pay its bills.

4/ This could lead to a default on the national debt, which would have a devastating impact on the economy. There are a few options for getting out of the debt ceiling crisis. One option is for Congress to raise the debt ceiling.

5/ This is the most likely outcome, as it has happened in the past. Another option is for Congress to cut spending. This would be difficult to do, as it would require both parties to agree on cuts. A third option is for Congress to do nothing.

6/ This would lead to a default on the national debt, which would have a devastating impact on the economy. The United States government is currently taking steps to get out of the debt ceiling crisis.

7/ Congress has passed a bill to raise the debt ceiling, but it is still being debated in the Senate. The government is also using "extraordinary measures" to avoid defaulting on the national debt.

8/ These measures include delaying payments to Social Security and Medicare beneficiaries, and selling off assets. It is difficult to predict what will happen in the future with regard to the debt ceiling crisis.

9/ It is possible that Congress will raise the debt ceiling, which would avoid a default. It is also possible that Congress will not be able to agree on a debt ceiling increase, which would lead to a default.

10/ The default would have a devastating impact on the economy, and it is possible that it would lead to a decrease in Social Security and Medicare benefits, in the value of retirement savings, credit, and more. All things many Americans come to rely on.

11/ It is VERY important for Congress to act to raise the debt ceiling and avoid a default so there is no decrease in confidence in the U.S. government making it more difficult to borrow money in the future, leading to higher interest rates, and thus, probably a recession.

If this #DebtCeiling thread helped shed some light on the matter, please feel free to RT the thread and follow my account for upcoming finance, macroeconomics, and timely educational threads. All the best, and see you soon! 🏦