Displaying items by tag: National Debt Danger

At the time of writing, 19th January America is about to hit their debt limit, meaning the government is not allowed to borrow any more money - unless Congress agrees to suspend or change the cap, currently almost $31.4tn (£25.4tn). Since 1960, politicians have moved to raise, extend or revise the definition of the debt limit 78 times - including three just in the last six months. But Republicans recently took control of the House of Representatives and are calling for spending cuts, raising concerns that politicians will delay acting this time - leading America to intentionally default for the first time in its history. Treasury Secretary Janet Yellen has estimated that special measures can buy time for the US until at least June, at which point the government will no longer be able to pay its bills. A true economic catastrophe - unpaid defence contractor payments, Social Security cheques, received by retirees and salaries of government employees, including the military, will all be affected.