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A Parachute With A Hole For The US Economy?

Mount Equity Group Tokyo, Japan > News > Markets > A Parachute With A Hole For The US Economy?

The US Government is at crossroads as they bid adieu to the current fiscal year and welcome the fiscal year of 2022. It turns out that the United States of America has hit the debt ceiling, and the Congress, within it, has locked horns regarding raising the debt ceiling, which, according to the US Treasury Secretary, Janet Yellen, if not raised, could lead to catastrophic events in the US economy. But why are people in the government anticipating a catastrophe?

The US government, for years, has been spending more than it should. And as even a layman would know, if you spend more than you earn, you will have to borrow money. So, as a result, the US government borrows money from the Federal Bank. This led to the creation of a debt ceiling, which is a limit cap, after which the government cannot borrow even a single penny.

With the beginning of the fiscal year 2022, the Biden-led government came up with an expenditure bill of $3.5…

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