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Under Article I Section 8 of the United States Constitution, only Congress can authorize the borrowing of money on the credit of the United States. From the founding of the United States until 1917, Congress directly authorized each individual debt issued. To provide more flexibility to finance the United States' involvement in World War I, Congress modified the method by which it authorized debt in the Second Liberty Bond Act of 1917.[3] Under this Act, Congress established an aggregate limit, or "ceiling," on the total amount of new bonds that could be issued.
The present debt ceiling is an aggregate limit applied to nearly all federal debt, which was substantially established by the Public Debt Acts[4][5] of 1939 and 1941 which have subsequently been amended to change the ceiling amount.
From time to time, political disputes arise when the Treasury advises Congress that the debt ceiling is about to be reached and indicating that a default is imminent. When the debt ceiling is reached, and pending an increase in the limit, Treasury may resort to "extraordinary measures" to buy more time before the ceiling can be raised by Congress. The United States has never reached the point of default where Treasury was incapable of paying U.S. debt obligations, though it has been close on several occasions. The only exception was during the War of 1812 when parts of Washington D.C. including the Treasury were burned.[6]
Note the (2) those are annotations...links to sources
Do you have ADD? You wanted an explanation of the debt ceiling. You got it.
What do you want to be educated about now?
From your linkA source that claimed you need to borrow to pay interest. LOL!
Second, infusions of cash to the Treasury from tax revenues vary greatly by month, and tax revenues in October and November tend to be fairly muted. Thus, the required cuts to federal spending when an increase in federal debt is precluded are particularly large during these months. If Treasury wanted to be certain that it always had sufficient cash on hand to cover all interest payments, it might need to cut non-interest spending by more than 40 percent.
How worried should we be if the debt ceiling isn’t lifted? | Brookings
If the debt limit binds, how would the U.S. Treasury operate? How much would federal spending have to be cut? How would the economy be affected? Wendy Edelberg and Louise Sheiner explain the stakes and potential ramifications.www.brookings.edu
What are you even talking about?Thanks.
Where does it say they need to borrow to pay interest?
Under this Act, Congress established an aggregate limit, or "ceiling," on the total amount of new bonds that could be issued.
Not here^
From your link
The debt limit caps the total amount of allowable outstanding U.S. federal debt. The U.S. hit that limit on August 1, 2021, but the Department of the Treasury has been undertaking a set of “extraordinary measures” so that the debt limit does not yet bind. The Treasury estimates that by October 18th, those measures will not be sufficient—unless Congress raises or suspends the debt limit before then, the Federal government will lack the cash to pay all its obligations.
Your own link provided that.You wanted an explanation of the debt ceiling.
LOL!
Wrong.
I wanted your proof that they need to increase the debt ceiling to pay for current debt.
Again...from YOUR own linkA source that claimed you need to borrow to pay interest. LOL!
Second, infusions of cash to the Treasury from tax revenues vary greatly by month, and tax revenues in October and November tend to be fairly muted. Thus, the required cuts to federal spending when an increase in federal debt is precluded are particularly large during these months. If Treasury wanted to be certain that it always had sufficient cash on hand to cover all interest payments, it might need to cut non-interest spending by more than 40 percent.
How worried should we be if the debt ceiling isn’t lifted? | Brookings
If the debt limit binds, how would the U.S. Treasury operate? How much would federal spending have to be cut? How would the economy be affected? Wendy Edelberg and Louise Sheiner explain the stakes and potential ramifications.
I'm talking about the present. Not about some point in the past, speaking of stupid responses.So your claim was that it wasn't possible for Dems to raise their own taxes...and when confronted with the fact that they HASVE done so (in fact several times) in the past...THAT is your stupid response??
Why? Because you've been told not to believe it?I'm talking about the present. Not about some point in the past, speaking of stupid responses.
If the left was serious about taxing the rich they would make it a focal point of their socialist agenda.
Don't ask people to approve of passing a three and a half billion dollar economy euthanizer
by claiming you will make the rich pay for it.
That's real bullshit! Everyone with half a brain knows it. Try making the rich pay for it first!
But of course that's something that will never happen.
If we refuse to raise the debt ceiling, the Federal government can not meet its existing obligations
But even if you were correct (and you never are)Why? Because you've been told not to believe it?
They have done it before.
Again...from YOUR own link
The economic effects of such an unprecedented event would surely be negative. However, there is an enormous amount of uncertainty surrounding the speed and magnitude of the damage the U.S. economy will incur if the U.S. government is unable to pay all its bills for a time—it depends on how long the situation lasts, how it is managed, and the extent to which investors alter their views about the safety of U.S. Treasuries. An extended impasse is likely to cause significant damage to the U.S. economy. Even in a best-case scenario where the impasse is short lived, the economy is likely to suffer sustained—and completely avoidable—damage, particularly given the challenges that COVID-19 poses to the health of the economy.
So how badly are you willing to damage the economy?
This is all about rich conservatives not wanting to have their taxes raised ONE penny and drug
First of all...interest is not the only obligation the federal government has.'We can pay interest without adding another penny of debt. DURR
They ain't shutting the government down over it moronAnd Dems still whining about their SALT deductions. LOL!
Bullshit.First of all...interest is not the only obligation the federal government has.'
Second...no...we can not. By the middle of October the federal government runs out of money. Your own link explained that to you
Moron
First of all...interest is not the only obligation the federal government has.'
Second...no...we can not. By the middle of October the federal government runs out of money. Your own link explained that to you
Moron
They ain't shutting the government down over it moron
What does that even mean?SS, Vets, Military are all mandatory expenditures that are well covered.
Again you stupid fucking idiot. Interest is NOT the only obligation that the Federal government has.First of all...interest is not the only obligation the federal government has.'
So what? They don't have to add a penny of debt to pay the interest they owe. Obviously.
They have a LOT of other obligations. How stupid are you?By the middle of October the federal government runs out of money.
Not if they only pay interest on the debt.
