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 ?
Playing political games with the debt ceiling has already hurt our economy and our credit rating, said Kaine.
President Trump has now vocalized support for getting rid of the debt ceiling altogether.
Despite the warnings, the current congressional record shows no legislation has been introduced to address the debt ceiling deadline.
That is exactly what would happen if the debt ceiling were breached.
Don't get me wrong: I realize that hitting the debt ceiling, even if the U.
On October 13th, speaking at George Washington University, IMF Chief, Christine Lagarde said that failure of USA to raise the US debt ceiling could damage not only the US but the rest of the global economy.
There are others with their arm chair hypothetical economics who contend that failure to raise the debt ceiling would not be devastating.
This same mechanism was also used to lift the debt ceiling twice following passage of the Budget Control Act.
As a response to the political conflict over the debt ceiling, Chinese rating agency Dagong downgraded the US to A- from A, saying the US "government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future.
The financial markets continue to buy into claims on Capitol Hill that a deal on the debt ceiling will be done before today's deadline," said Craig Erlam, market analyst at Alpari.
According to CBS News, James said that unless something is done to extend the debt ceiling, the Treasury Department will not be able to pay off America's bills.
The IMF this week forecast that US growth would pick up in 2014, barring a voluntary bond default if the debt ceiling is not raised, which could be devastating to the global financial system.