{"id":10531,"date":"2023-04-25T17:15:23","date_gmt":"2023-04-25T17:15:23","guid":{"rendered":"http:\/\/lonecandle.com\/?p=10531"},"modified":"2023-04-25T17:15:23","modified_gmt":"2023-04-25T17:15:23","slug":"heres-when-the-debt-limit-crisis-gets-increasingly-risky","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=10531","title":{"rendered":"Here&#8217;s when the debt-limit crisis gets increasingly risky"},"content":{"rendered":"\n<p>\n\n&#8220;The U.S. will default on its $31.4 trillion debt this year if Congress doesn\u2019t raise the nation\u2019s borrowing cap. But when, exactly? That\u2019s harder to answer.<\/p>\n\n\n\n<p>While Congress sets the nation&#8217;s annual budget, the Treasury Department actually manages trillions of dollars beyond that, with millions of payments flowing in and out of the government\u2019s accounts each day. And just like an everyday checking account, cash flow varies: Sometimes the government gets a flood of dollars from tax receipts, and other times it needs to pay the bills. Those dips and surges add another wrinkle to a political drama that threatens to tank the global economy.<\/p>\n\n\n\n<p>By this summer or early fall, unless Congress acts before then, the U.S. government will be so cash-strapped it won\u2019t be able to pay interest and principal to the country\u2019s lenders. But before the nation reaches that point of default, it could come alarmingly close several times over the next few months as spending and revenue rise and fall \u2014 a fluctuation that could spook Wall Street, escalate pressure on negotiations between congressional leaders and President Joe Biden, and potentially force a short-term fix.&#8221;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.politico.com\/interactives\/2023\/us-debt-ceiling-default-timeline\/\">https:\/\/www.politico.com\/interactives\/2023\/us-debt-ceiling-default-timeline\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The U.S. will default on its $31.4 trillion debt this year if Congress doesn\u2019t raise the nation\u2019s borrowing cap. But when, exactly? That\u2019s harder to answer.<br \/>\nWhile Congress sets the nation&#8217;s annual budget, the Treasury Department actually manages trillions of dollars beyond that, with millions of payments flowing in and out of the government\u2019s accounts each day. And just like an everyday checking account, cash flow varies: Sometimes the government gets a flood of dollars from tax receipts, and other times it needs to pay the bills. Those dips and surges add another wrinkle to a political drama that threatens to tank the global economy.<\/p>\n<p>By this summer or early fall, unless Congress acts before then, the U.S. government will be so cash-strapped it won\u2019t be able to pay interest and principal to the country\u2019s lenders. But before the nation reaches that point of default, it could come alarmingly close several times over the next few months as spending and revenue rise and fall \u2014 a fluctuation that could spook Wall Street, escalate pressure on negotiations between congressional leaders and President Joe Biden, and potentially force a short-term fix.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[7,1393,1385,1193],"class_list":["post-10531","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-debt","tag-debt-ceiling","tag-debt-limit","tag-government-spending"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10531"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10531\/revisions"}],"predecessor-version":[{"id":10532,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/10531\/revisions\/10532"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}