Reaching the Debt Limit : Background and Potential Effects on Government Operations

Author / Creator

Library of Congress. Foreign Affairs and National Defense Division

Available as

Online

Summary

Examines possibility of Federal Government reaching its statutory debt limit and not raising it, focusing on Government operations. Explains nature of Federal debt, processes associated with Federa...

Examines possibility of Federal Government reaching its statutory debt limit and not raising it, focusing on Government operations. Explains nature of Federal debt, processes associated with Federal borrowing, and historical events that may influence prospective actions. Analyzes potential implications if Federal Government may no longer issue debt, has exhausted its alternative sources of cash, and, therefore, depends on incoming receipts or other sources of funds to provide any cash needed to liquidate Federal obligations. Addresses considerations for increasing debt limit under current policy, and considers impact fiscal policy could have on debt limit going forward.

Show More