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Daunting debt limit dynamics
Goldman Sachs Exchanges
The Challenges of Raising the Debt Limit
Neither party wants to take responsibility for raising the debt limit, even a small amount. The clearest example of this was in 2021 when Democrats had the power to increase the debt limit to any amount they wanted with no Republican support. David Beers explains what rating agencies look at when rating sovereigns. These ratings are a key metric investors use to determine what assets they can hold.
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