When USA Government is running out of money within weeks unless it allows borrowing more money? Let's Discuss the Debt ceiling and 14th Amendment.
Created by : David Peter
There are some Chos and speculation in the market if USA government failed to raise the Debt Ceiling then US Government Can Default on its loans, But it does not happen.
It is also known as the debt limit, basically, this is the Law in USA that prevents more debt to pay bills of US government.
This includes the salary of federal employees, the Military, Social security, and medicare.
The cap currently stands at roughly $31.4tn (£25.2tn). That limit was breached in January,
Basically it is the formality of the US Congress to raise the limit on debt but they are not ready to agree on the terms
Treasury Secretary Janet Yellen issued a warning that unless additional borrowing is done, the United States may not be able to make all of its budgetary obligations as early as June 1.
The debt limit was introduced in 1917, when the US entered World War I.
It states that the "validity of the public debt of the United States... shall not be questioned". By Invoking it President can bypass congress
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