How High Can The Ceiling Go?

Recently in class we discussed the management of money in the United States. One greater discussion throughout country is the management of not only money, but the way the government spends it and increases the national debt. According to many reports from CBO and Fox, the national debt limit could be reached within the next month or two if Congress does not raise the limit.

Republican Senators are refusing to raise the set limit any further in support of Democratic intensions. Minority leader Mitch McConnell and forty-four other Senate Republicans signed a letter last month vowing that they would not vote in favor of the bill. Congress suspended the debt limit two years ago but Republican Senators are forcing Democrats to do it on their own some way.

Due to the conflict with the debt limit and poor spending, there is also fear that the treasury may run low on money. In June the cash balance was somewhere around $850 billion and dropped below $700 billion In July. The Treasury also believed that they would also burn $250 billion before the end of July.

With all of these money issues presented in the United States we could potentially see another government shutdown by the end of September or October. We could see a rise of inflation throughout the country if all things go wrong. Not only would the shut down effect government employees but it would also effect a number of supplement and hand-out programs.