US to run out of money Oct. 18th

[ThisGuyTony 35,292]

“Treasury Secretary Janet Yellen has warned that the federal government will likely run out of cash and extraordinary measures by October 18, leaving Congress with little time to act to stave off what would likely be a catastrophic default. 

Democrats do have the option to raise the debt limit on their own using a process known as budget reconciliation, but they have argued that route is too risky and would risk a default, leaving it unclear how the issue will be resolved.”

[OMF 3,677]

Won’t they just print more money?

[Gabi001 2,470]

Can someone explain me how these things work? How is it possible that US government runs out of money so often? In my country the parliament passes the budget for whole year and then government spends money according to this budged.

[Stupid Oreo 14,669]

United States flop era

[SharkmanthaC 115,248]

6 minutes ago, Gabi001 said:

Can someone explain me how these things work? How is it possible that US government runs out of money so often? In my country the parliament passes the budget for whole year and then government spends money according to this budged.

Because we have idiots controlling our government. They get into pissing contests to try and push their agendas. 

[gabeoz 7,915]

2 minutes ago, Gabi001 said:

Can someone explain me how these things work? How is it possible that US government runs out of money so often? In my country the parliament passes the budget for whole year and then government spends money according to this budged.

About a century ago the US Congress passed a bill requiring a “debt ceiling”, a self imposed amount set by congress that limits the amount of money our federal government is allowed to go into debt. If we reach/surpass this limit without raising it, then we technically default on our debt because we are borrowing more money than we promise to pay back. The US yearly budget is usually used as a negotiating tool by either party o, which is why it constantly comes down to hours before the budget period ends. This issue here is that we have reached the limit of our debt ceiling and our budget runs a deficit, so we can’t continue to fund our government until congress raises that debt ceiling.

[Queen Bitch 10,513]

Well a nice first step to avoiding something like that would be to not spend almost 800 billion on the military

[Mister G 10,516]

26 minutes ago, Aussie said:

Won’t they just print more money?

They could but it wouldn’t have any value and it creates more inflation and devalues it against other currencies.

[Taylucifer 5,249]

[ProfessionalClown 10,647]

[PunkTheFunk 125,733]

They always hype up this debt ceiling issue and then figure it out last minute. No need to panic girls 

[A MESS 3,938]

smh...someone in the government is not raising and grinding. what about a second job? what if they give up part of their pays???? that's the American dream, they should totally work for free if they wanna reach the top 

[LaLuna 12,732]

1 hour ago, Gabi001 said:

Can someone explain me how these things work? How is it possible that US government runs out of money so often? In my country the parliament passes the budget for whole year and then government spends money according to this budged.

That's a sensible government does, yes, but we're talking about the US here 

[Flapjack 1,264]

Omg me too! Twinning

[Economy 53,084]

1 hour ago, Mister G said:

They could but it wouldn’t have any value and it creates more inflation and devalues it against other currencies.

Plus the Federal Reserve isnt allowed to just print money and directly give it to the Government or at least that would be super frowned upon since the Fed is suppostu operate seperate to Government

 

They have been printing money but they finance the government indirectly by buying up a lot of their bonds that they add to their balance sheet

 

Since bonds bought by Federal Reserve is still debt, the Fed Printing more money doesnt solve this issue. 

 

They would have to give it directly which they dont do