QWANZ

The U.S. is close to reaching its $14.294 trillion debt limit and our government needs money. In order to get money, we need to borrow money. However, if we reach the debt limit, the problem is that we may experience an unprecedented challenge that this country has not experienced before. You see, as long as we borrow money while we are under the debt limit, the government can easily borrow money by selling Treasury bonds. But if we exceed the credit limit, that could make investors wary and...   >>>

The U.S. is close to reaching its $14.294 trillion debt limit and our government needs money. In order to get money, we need to borrow money. However, if we reach the debt limit, the problem is that we may experience an unprecedented challenge that this country has not experienced before. You see, as long as we borrow money while we are under the debt limit, the government can easily borrow money by selling Treasury bonds. But if we exceed the credit limit, that could make investors wary and we may have to sell the Treasury bonds with higher interest rates to make them more attractive to investors. Offering to pay higher interest rates on U.S. Treasury bonds can mean a lot of things -- most of them involve negatively affecting many Americans.



There are other options, of course. The government can default on some of our debt or put government payables on hold or cut federal spending or raise taxes -- options which are all anxiety-inducing to say the least.



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