Debt ceiling


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Debt ceiling

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.
References in periodicals archive ?
Obama himself voted against raising the debt ceiling when he was a senator in 2006.
While a quick resolution to the shutdown would be a positive for the economy, and arguably for equities, the shutdown still represents less of a risk than the possibility of a debt ceiling breach.
"We can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means."
While the shutdown itself is unlikely to cause major disruption in the markets, a fight over the debt ceiling could.
He recalled the damage caused by the last debt ceiling debate, when Standard & Poor's removed the U.S.
17 debt ceiling deadline undoubtedly will become part of an "even more complicated narrative," with three new dynamics:
Treasury Secretary Jacob Lew told Congress last month that the federal government will reach its debt ceiling of 16.7 trillion U.S.
Jones blamed both parties' behavior over the years for the need to raise the debt ceiling but said she supports a "deal that employs significant spending cuts and budget controls to rein in out of control spending and debt while at the same time avoiding an irresponsible and catastrophic default."
Meanwhile, Speaker Boehner has offered a two-stage plan to raise the debt ceiling by upwards of $2.5 trillion but it would require the White House to accept much deeper spending cuts than he was negotiating only last week with President Obama.
''The sources of the problems currently talked about (in the currency market) are in Europe, with its debt crisis, and in the United States, with the debt ceiling issue,'' he said.
PRINCETON, NJ -- Gallup finds that Americans, by a 42% to 22% margin, are more likely to want their representative in Congress to vote against rather than for an increase in the federal debt ceiling, with 35% saying they have no opinion.
Treasury says it will be forced to default on its obligations if Congress does not raise the $14.3 trillion debt ceiling, which caps how much it can borrow, by Aug.