United States Government short of money again raised the debt ceiling could easily cross the border?
recently, the United States Treasury Secretary Jacob Lew to United States Congressional leaders write a sincere letter, the core content is-"money". If Congress doesn't raise the debt ceiling as soon as possible (subtext: Let me send some debt), November 3, 30 billion dollars in the hands of the Federal Government will soon run out.
to raise the debt ceiling? Last February, the United States Congress has just approved the debt ceiling Bill authorized the Ministry of finance was about 17. Based on the $ 2 trillion debt continues to issue bonds until March 15, 2015. To alleviate the pressing needs at that time. So fast, United States Government short of money?
United States Government in early November over more than 18 trillion dollar debt ceiling, and United States economic conditions do? According to data from the World Bank, 2014 United States GDP output value of us $ 17.419 trillion. In a Word, earned more could have spent more, money enough to spend on debt. United States Government believes that the United States no of subjugation, and as long as you don't subscribe to, I'm sure I'll debt. First borrowed the money available, solutions for the current predicament would be nice.
However, the United States Government is by no means the first time by "borrowing" to live, if ever United States debt ceiling increases and reduction, but after 1962, United States debt ceiling increase. Enter since 2000, the United States fiscal position from Clinton-era surplus to a deficit, debt also increases, especially since the outbreak of the financial crisis, United States debt growth is even more alarming, fiscal year 2010, the United States GDP amounted to $ 14.62 trillion debt ceiling of $ 14.29 trillion, equivalent to 98% per cent of total GDP. After 2010, the United States debt ceiling began to exceed its total GDP. Says United States Government "debt" to live, it is not exaggeration.
but by "borrowing" the living is not an option, debts or money, still have to pay interest, once the debt defaults, even strong national strength in the United States too much. For the serious consequences of default, Jacob Lew wrote in a letter: "Treasury cash holdings are now below the safety line, interim measures have been taken to get by. National reputation for the United States is critical. If Congress were to wait until the last moment before taking any action, this will dampen business and consumer confidence, on the global financial markets and the United States also will cause irreparable damage. "The
first part tells United States Congressional leaders, the way I have to think about, or lack of money. Tells the last truth: the United States is able to issue such debt, relying on investors for United States Government confidence, once the United States Government default, credit worry who will purchase United States Government bonds?
United States Web site has published an article explains much of the national interest, "If the United States some of the debt (may only be part of) default United States Treasury interest rates dramatically increase greatly limits the United States debt at reasonable interest rates after refinancing abilities. United States the rest of the debt will be included in the watch list. Once could not get normal debt snowball roll down, United States is a comprehensive insolvency risk. "