Posts tagged with: United States debt-ceiling crisis

Shutdown DealThe U.S. government shutdown ended last night with a budget agreement that raises the debt limit, funding the government until February.  Acton director of research, Samuel Gregg, addressed this in a new post at Aleteia. He says:

Once again, I’m afraid, the United States Congress and the Administration has opted to live in un-truth by denying the dire fiscal realities facing America. Since August 2012, the total public debt of the United States has increased from $16,015 trillion to $16,747 trillion. And in the meantime, the size of the federal government also continues to grow. How much more debt do our political masters think Americans want? How much bigger do some of them think the federal government should be? Is there any upper limit in their mind?

But it isn’t just a question of the failure of legislators and government officials. There are, it seems, a good number of American citizens who simply don’t care about fiscal responsibility, not to mention plenty of businesses that prefer corporate welfare rather than actually competing in the marketplace.

In Gregg’s newest book, Tea Party Catholic, he says that governments and individuals running up high levels of debt may be dealing with a “deeper moral disorder.” He quotes Benedict XVI who said that living off of debt is “living in untruth.” (more…)

636_debt_ceiling_0What is the debt limit or debt ceiling?

In most years the federal government brings in less revenue than it spends. To cover this difference, the Treasury Department has to issue government bonds which increases the national debt. The debt limit is legislative restriction on the total amount of national debt the Treasury is authorized to borrow to meet its existing legal obligations.

What is the current debt limit?

The current statutory limit on total debt issued by the Treasury is just under $16.7 trillion.

Shouldn’t we want Congress to refuses to raise the debt ceiling since it will lower our national debt?

The debt ceiling does not lower the national debt. The legal obligation to pay the debt has already been incurred by the government so the money is already owed. Refusing to raise the debt ceiling merely prevents the Treasury Department from borrowing money to pay the government’s bills.

When will the government run out of money to pay its bills?

The current estimate is October 17, 2013.

What happens when the government doesn’t have money to pay its bills?
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