Debt ceiling set to record high of $22 trillion…

0
1267
debt ceiling

The federal government is set to reinstate its borrowing limit, and a new analysis indicates that it will be a record-high $22 trillion — and then, it won’t provide enough money to fund the government past summer.

The shocking number, however, is only slightly higher than the current actual debt of some $21 trillion.

The ceiling has been in suspension and the debt has grown under President Trump. It is set to be reinstated on March 2, 2019.

A new Bipartisan Policy Center estimate suggests that the new limit will be $22 trillion, assuming no action is taken by lawmakers before that time.

The BPC analysis said: “Treasury will be able to fully fund the government until at least mid-summer 2019 by using extraordinary measures, cash-on-hand, and incoming cash flow. But costs to taxpayers will start earlier from factors associated with reaching the debt limit such as higher interest rates on U.S. Treasury securities.”

The analysis warned of troubles with the growing debt.

“Our long-term debt path is reckless and potentially dangerous for the future of our economy, but the debt limit in its current form carries unacceptable costs and risks,” Shai Akabas, economic policy director at BPC, said. “It’s also proven to be an unsuccessful playbook for debt reduction. The American people have seen this movie before, and we should demand a different ending.”

The BPC analysis is here.