Debt Ceiling Crisis 2013

The treasury won t hit the debt ceiling for another two months which will bring another crisis with the same outcome.

Debt ceiling crisis 2013. The debt limit or ceiling sets the maximum amount of outstanding federal debt the u s. The crisis began in january 2013 when the united states reached the debt ceiling of 16 394 trillion that had been enacted following the debt ceiling crisis of 2011. The government must be able to issue new debt as long as it continues to run a budget deficit.

The democratic controlled senate budget proposes an end to sequestration higher taxes major infrastructure investment and replacement of the funds taken from health and education programs. Right now it s at about 16 94tn. The 2013 united states debt ceiling crisis centered on the raising of the federal government debt ceiling and is part of an ongoing political debate in the united states congress about federal government spending and the national debt.

The united states debt ceiling crisis of 2011 was a stage in the ongoing political debate in the united states congress about the appropriate level of government spending and its effect on the national debt and deficit the debate centered around the raising of the debt ceiling which is normally raised without debate the crisis led to the passage of the budget control act of 2011. America s first debt ceiling crisis by joseph j. In 2013 the fed has acted preemptively and postponed its taper for fiscal reasons.

Government actually bumped up against its 16 699 trillion borrowing limit five months ago. It s designed so that congress doesn t recklessly spend more money than is responsible. That s right the u s.

It wanted to force the federal government to cut spending in the fiscal year 2013 budget. The debt ceiling is the borrowing limit that congress sets for itself. Debt ceiling crisis 2013 in january 2013 congress threatened not to raise the debt ceiling.

Thorndike cnnmoney september 6 2013. Debt ceiling crisis 2013 at this time the two political parties have drastically different budget proposals. The fed is still purchasing at a rate of 85 billion a year and we do not see an end to this trend until at least.