Not worried about the US debt ceiling? You should be...

Kevin McCarthy

UNITED STATES - MAY 23: Speaker of the House Kevin McCarthy, R-Calif., talks with reporters about the debt ceiling negotiations in the U.S. Capitol on Tuesday, May 23, 2023. (Tom Williams/CQ Roll Call/Sipa USA) Credit: CQ-Roll Call/Sipa USA

The United States is facing a looming financial crisis as the debt ceiling deadline of June the 1st approaches. Without a deal, the U-S Government would default on debt payments, which could trigger global recession, freezing of credit markets, stock market declines, and widespread unemployment - all potential outcomes.


It's an important topic that often makes headlines but can be a bit confusing: the U-S debt ceiling.
So, what exactly is the debt ceiling that's making headlines around the world?
The debt ceiling is a legal limit set by Congress on the amount of debt that the US government can borrow.
It serves as a cap on how much money the government can owe to creditors.
First introduced in 1917, it sets the financial limits within which the government has to work.
It now stands at 31.4 trillion US dollars

Share