$TRUMP : I am very glad to announce that after so many years I agree with Senator Elizabeth Warren on one issue. To prevent economic catastrophe, the debt ceiling must be completely abolished. <с>
The U.S. debt ceiling is a limit set by Congress on the amount of money the government can borrow to pay for already approved expenditures.
What’s the difficulty:
• The U.S. spends more than it earns and regularly borrows money through the issuance of bonds.
• Once the debt approaches the limit, the Treasury cannot borrow, even to pay pensions, salaries, military contracts, etc.
What’s the problem:
• If the limit is not raised in time → there is a risk of technical default.
• This undermines confidence in American bonds (a key asset in the global economy).
• Consequences: market volatility, rising rates, increased cost of debt, panic among investors.
Simply put:
The U.S. sets its own "debt ceiling" but continues to spend.
And then they create a political circus: to raise the limit or not.
If not raised — crisis. If raised — then it was all in vain.
Well, I also somewhat agree with Trump here - sound idea!