Don't look now, but the U.S. government is about to hit its self-imposed debt ceiling and risk being unable to borrow more money to pay debts, salaries and other obligations.
Result: Another fiscal crisis and even potentially a shutdown of government operations, but this time it's not related to manipulation from the Oval Office. Rather, it's brought on by big spending by those who campaigned for budget cutbacks. Instead, they kept spending at an even faster rate, with money they didn't have.
Can you say "hypocrisy"?
The Congressional Budget Office noted that currently there is no statutory limit on the new federal debt, but that temporary suspension expired today, March 1, 2019. Tomorrow, Saturday, March 2, 2019, the debt limit will be automatically reset, but that too will expire in a few months and the Treasury will run out of cash in September.
If that happens, the government won't be able to pay its bills, it will default on its debts and won't be able to support its activities. So does that mean another shutdown? Unless Congress raises the ceiling again, yes.
Want some numbers? The previous debt ceiling was $20.5 trillion. As of January 31, another $1.5 trillion had been borrowed, raising the new limit to almost $22 trillion, which will be hit this weekend.
As that happens, the Treasury won't be able to borrow any more money, except to pay off debts that are maturing.
So whatever money the government has available will go to repay its creditors, and little or nothing will be available to support other programs.
And that is tantamount to another shutdown of government programs, including those intended to help those in need.
So much for campaign promises to trim the federal budget and reduce debt.
Wait a minute, maybe that's the plan, and so what if some people get hurt. Investors have a higher priority.
Unless Congress raises the ceiling, thus enabling deeper debt.
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