Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Sleuth ​Journal
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

US Debt Ceiling a Greater Threat Than the Shutdown

% of readers think this story is Fact. Add your two cents.


The second US partial government shutdown had been avoided after a bipartisan bill passed by both chambers of Congress was signed by President Donald Trump.

Even though he did not get funding for its border wall campaign promise, he decided to sign the funding bill and declare a national emergency, a move that it is widely believed to exceed its authority. Democrats are likely to challenge the decision in court, but until a resolution will be found the government can function properly.

Debt Ceiling on March 1st

Problems for US government funding are far from being over since we have the debt ceiling on March 1st. The United States had been forced to raise the max. amount of money it can borrow several times in the last few years and each time the democrats and the republicans found common ground very hard.

Financial markets and the online trading environment as a whole might find themselves under pressure, given that since the beginning of January we have the democrats controlling the House of Representatives, and the Republicans with a majority in the Senate.

A mutual agreement and the risk of President Donald Trump vetoing a potential deal might push debt ceiling further for a few months, probably until autumn.

Government funding after March 1st

As seen in the past, the Treasury has the ability to fund itself for several months after the deadline, using some extraordinary measures. Still, hardships will begin to occur starting from summer, if both parties won’t manage to reach an agreement.

With the latest tax reform, US government deficit ballooned in the 2018 fiscal year, reaching $779 billion, 17% higher as compared to a year ago. The worse news is the projections, the deficit is expected to exceed $1 trillion in 2020.

With such a big fiscal deficit, the US Treasury will need to issue a lot of bonds and with no debt ceiling increase, a negative spiral of events might start to unfold.

Fitch Ratings had already acknowledged that the debt limit is a real risk for the US AAA credit score. A downgrade or even a negative change in outlook could mean the funding will be made at much higher costs. The bonds market could become more volatile and its performance might influence the entire online trading world, including the stock market and the value of the US dollar.


Source: http://www.thesleuthjournal.com/us-debt-ceiling-a-greater-threat-than-the-shutdown/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.