Debt Ceiling 💰

Debt Ceiling

The latest fight in the government scene regards something called the debt ceiling. Every year, Congress limits the amount of money the government can borrow, something called the debt ceiling. If they exceed that, Congress needs to vote to raise the ceiling or suspend it so that the Treasury can issue debt. The last time Congress suspended the debt ceiling was in 2019, and the limit was put back in place in August. The debt ceiling has created a major problem now, and it looks like partisanship will come into play.

For the Treasury to pay its bills back, the debt ceiling needs to be raised so that they can borrow cash. The deadline for this is unknown, with the CBO estimating that it would be sometime in October or November, while think-tanks in Washington believe that the end of the month will be the deadline. According to Janet Yellen, the secretary of the Treasury, they have been resorting to extreme measures of raising cash, and that it likely wouldn’t last for long. If the debt ceiling stays the same, it’s very likely that the US would default on those payments, which could cripple the economy and send us into the worst recession in US history. This is still partisan though as Republicans aren’t on board with the idea of raising the ceiling once again, which could possibly lead to a government shutdown like we saw in the later stages of the Trump administration. The Democrats also have a lot to think about as they are trying to pass two major spending bills that require borrowing, so the best way to describe this is a political conundrum that could have a major effect on the economy. What’s your opinion on raising the debt ceiling?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.