The debt ceiling’s threat to America
Explain It to Me
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The US Defaulting on Its Debts
This is a generally very ridiculous part of the american government. Defaulting on its obligations here would obviously not be good for the markets. Most countries do not have something like this because if congress wants to limit spending, it already does that. This is just superredundant in a way that is extremely dangerous. It might help to think about it as like a government shut down with an enormous, like, disastrous hang over. If it results in a down ing of the us Credit score, which like even the threat of hitting the debt seiling did in 20 11, it raises the cost of the us. Borrowing going forward, which means more debt and more opportunities to hit
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