Debt Ceiling About to Be Reached at 20 Trillion

This is the point at which the government can't borrow any more money, at this point the government must start paying it back. However the U.S got no more money. They spent it all on the military and prisons. This is how every civilization works. They run up the debt until they hit the debt ceiling and then it all comes down.

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>the us government
>paying back
kek

the debt will pay itself

If creditors believe that they won't loan anymore to the government

Explain.

>This is the point at which the government can't borrow any more money, at this point the government must start paying it back

A fucking leaf.

Think. What happened the previous times the US reached the debt ceiling?

okay tell the truth, do you actually know how the debt ceiling works?

The Great Stagnation, the Great Depression, the S&L crisis, the .COM bust, the 2008 Recession.

Yeah it's the point at which China says "fuck you we ain't given you shit".

No, the ceiling is simply raised.

Yeah but how long can they keep doing that? And i highly doubt Reagan would raise it considering he spoke agaainst the debt.

okay so thats a no then

the US constitution made it so that if the government wanted to borrow money, it had to get congress together to rule on it, on an individual basis. in world war 1 this was seen as too encumbering, so the debt ceiling was introduced. this just means that the government can borrow as much as it likes (of course congress is involved as you'd expect), but once the debt ceiling is reached no more can be borrowed. congress can of course come together to raise it.

shit got out of hand starting in the 70s, the government just started borrowing money like it was nothing, the politicians kept it up since nobody wanted to stop it, and that gets us to today.

today? if the government stops borrowing, the government effectively ceases to exist. so it won't stop borrowing. another 2013 crisis won't happen again since congress is majority republican while under obama it was split, so the ceiling will just be raised and nothing bad will happen.

in other words it's nothing.

You must be joking. Reagan is the one who started this whole mess. He raised the debt by 180% in his two terms. More than any president before or since.

In case you aren't: the debt ceiling is a number set by CONGRESS that states the limit on purpose license debt issues by the treasury. If it is reached, the government cannot borrow any more money from the federal reserve. This would be disastrous so whenever it happens, the ceiling is ALWAYS raised. China doesn't come into the equation at all.

But the debt will get super high and eventually it can't go on forever right?

that's where the US military comes in.

The fuck? I thought Reagan was a conservative libertarian who wanted to cut government? Sorry im new to all this shit and am starting to get into politics but i really like reagan i heard his speeches about how bad the debt was and how important a balanced budget is.

How does the military help the debt?

>republicans raised the debt ceiling the least

rly mak u tanks

when countries get so uppity that they start pulling shit over the debt, those countries become horrible dictatorships and get invaded to spread democracy.

But i though reagan is the dude who did it all he's a republican

What do you mean pulling shit over the debt? So basically countries can't pull their money out of they get invaded?

Why not just CUT the military funding so you don't need all this money?

>What do you mean pulling shit over the debt?
if china says "we are not giving you any more money until you start paying back more than you borrow from us", china gets invaded.

>Why not just CUT the military funding so you don't need all this money?
no.

Yes. The two aren't mutually exclusive.

Learn how debt and government finances work first. Protip: most of the debt isn't to other countries.

Is most debt to U.S banks and institutions?

>i really like reagan i heard his speeches about how bad the debt was and how important a balanced budget is.

Yeah, it was all talk. He borrowed like there was no tomorrow.

thebalance.com/who-owns-the-u-s-national-debt-3306124

We will false flag ourselves starting a war with China so we don't have to pay them back. Boom.

That's not how the debt ceiling works. The debt ceiling is the arbitrary limit upon which the government previously agreed to reconsider their debts.

When the debt ceiling is reached, as it has been previously, the government raises the debt ceiling as a temporary* measure.

Until the point at which interest payments are grossly outpaced by their revenues and private actors stop lending the federal government money.

This chart could have been made better

Separate the two charts, deficit on top debt on bottom, but keep the x axis as is and keep the gold standard removal line too so you get the same effect but without the retarded chart overlap at the end.

More debt means more opportunities to issue treasury notes, which provide a level of security for multinationals and other countries. Funny thing people are buying fewer treasury bonds because they're not confident about the current political stability of the United States and the ongoing chatter about protectionism. This in turn will mean higher interest rates and hence makes borrowing more expensive.

He is literally the father of neoliberalism which is has caused a lot of the mess world is in today.

But one should be worried more about private debt than public one which is steadily increasing around the globe.