How the Treasury Delays the $31 Trillion Debt Ceiling | WSJ

Janet Yellen said hitting the debt ceiling would be a “self-imposed calamity.” As the U.S. nears the debt ceiling, the Treasury Department has begun deploying so-called extraordinary measures.
WSJ’s Jon Hilsenrath explains what those measures are and how they help the country avoid a debt disaster.
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#Debt #Treasury #WSJ

[@kyb7795]

As a builder I can tell you raising the ceiling is the safest option but they could also lower the debt foundation 🙂

[@johnw4748]

What is the debt foundation ? Everyone loves to inherit some money or assets from their late parents. Do you mean our next generation loves to inherit the skyrocketing high debt from us?

[@entertainmentjoke2871]

I see what you trying to convey. Lol.

[@kieranrollinson8750]

I AM NOT EVEN FROM AMERICA!!!!! YET, IT IS OBVIOUS THAT THIS VIDEO IS NOTHING BUT DEMOCRAT PARTY PROPAGANDA!!!!!!!!!!!!! :D :D

[@alansach8437]

What is the debt foundation? The debt ceiling is unrelated to future spending. This money has already been spent. The debt ceiling needs to be lifted to pay for what we have already spent. Negotiate the budget when the budget comes up on the fall.

[@danielhutchinson6604]

Can You dig it?

[@serseri_bs2961]

AWZ800X ONLY Few hours OLD !! IMAGINE THE POTENTIAL

[@gigachad-jh1dh]

No.

[@CesarAnton]

scammer, you should be ashamed...

[@iamthesupremeleader]

You've just described a ponzi scheme 😂

[@cuzmariosaidso]

Yeah they did

[@kevintao3973]

Yes, exactly: The US has to raise the debt ceiling because it can't pay it's investors, after that, they borrow more to pay the previous investors their interest, but the cycle keeps repeating. It's a vicious cycle, that ultimately will lead to a US default. My opinion: I think that everything in the US is a ponzi scheme, from government debt, all the way to suburban sprawl.

[@d3admaub938]

We’re getting really close guys. Soon

[@yumurtahyrav2411]

He is a visionary. AWZ800X is a long hold

[@gigachad-jh1dh]

But no.

[@henrylivingstone2971]

Bot

[@dr.syndrome9165]

And unfortunately, they export inflation "the extra printed currency" to poor countries, resulting in massive ecnomic upheavals for the poor people.

[@IPGAuto]

It’s even worse than that. They exported that debt at 0% interest. Now they’ve raised the FFR to 5% and the first to suffer are those poor countries. It’s all coming back to the US though

[@giovannidefreitaslimadalvi6299]

Exactly! Here in Brazil we are massive increasing interest rates to compete with US's interest rates.

[@pralineblues]

@@giovannidefreitaslimadalvi6299 guys it's not because the US that other countries' interest rates are increasing.. dont blame US for everything. It's because of COVID relief packages that there is too much money out there. Inflation is more dangerous than piking interest rates, so govts are increasing rates. During COVID, everyone demanded govts to give money. Not you guys blame the govt 😂

[@giovannidefreitaslimadalvi6299]

@Gloria I disagree with you, Gloria. First of all, the US is one of the most security countries to invest in, so if you are an investor, would you prefer to invest in the USA or Brazil? We already default in our history. Do you want to take the risk without any gain? So, if US' s interest rates increase, we need to increase our interest rates too, because without that we will lose all of our dolares, Do you want your money in Reais? I doubt that. Another point is that our money, Reais, have as guarantee your money. With your inflation, you are destroying our current and our reserves. USA' s inflation has the advantage that everyone wants dolares. However, if it is not because of that, you will suffer a bigger inflation because your government has been spending too much. If you want to understand this process better, you can study the 90' Brazilian monetary history.

[@htleong4790]

The debt ceiling will be raised. What is concerning is that there are no countries which will opt to buy treasuries even when the debt ceiling is increased but instead sell their treasury bonds holding. Can the feds control the resulting inflation then?

[@Smiley66833]

🤔🤔🤔 What can they sell that can holds any value??

[@johnw4748]

If other countries understand that USA is not able to pay off her debt, they will opt to sell treasury bonds.😢 just hold the minimum for the trade.

[@alansach8437]

The advantage the US has is that the US dollar is the gold standard (as it were) for the world. Every other currency is compared to and valued in US dollars. That's why it would be so disastrous for the US to default, not only for the US, but for the world, and why it won't happen. To default would be unconstitutional, so if Congress doesn't raise the limit, the president will do so unilaterally, or they will mint a trillion dollar coin, or whatever, and the courts will back up the administration because the credit of the United States "shall not be questioned".

[@babitapandhare1889]

@@alansach8437 lol , keep living in your bubble

[@asiongsalonga770]

@@alansach8437 how is a paper goldstandard?

[@pcgenerationstore]

Too many bots in comment section

[@skydiver1013]

The annual interest to service our National Debt is well above $500 Billion a year and approaching what we spend on Defence.

[@phuocluong7974]

and that's with low/bottom interest rates. As the Feds continue to increase interest rates due to inflation, expect that figure to increase dramatically in the years to come

[@Mjixa]

Each year the US is faced with the debt ceiling problem. I think the US gov spend more than it receives.Many US gov agency need to downsize, cut military budget, and cut unnecessary spending. Federal gov need to give some power over state to take over some government authorities. That debt will never be paid even in centuries to come as it keep borrowing.

[@jermainevaughn2698]

That’s what we’ve been trying to do but it doesn’t seem to be working

[@tyneggs3792]

Put the loan on the tax payers backs as opposed to the oligarchy that made this mess in the first place

[@WhatToDoInOneDay]

And people are confused why the public have the highest credit card debt in history too. It's the culture and it's ugly.

[@darkking9800]

Nahihiya pa cla😂 i'm waiting for the ") Trillion dollar coin" or "FED Printing Money" 🤣

[@goletra]

Your spending has been twice your income for 30 years and you're asking the credit card company to increase the credit limit.

[@MrStevemur]

The ceiling, the ceiling, the ceiling is on fire. We don’t need no water…

[@WonToTwee]

How is it legal for the government to cash out postal workers pensions and spend there money they worked YEARS for

[@shellysmith1037]

this administration is paying the pensions for Ukraine government workers !!! let that sink in. America last,

[@Asker_Karatas]

AWZ800X is also kicking off and showing A LOT of potential. Don't Sleep on it

[@gigachad-jh1dh]

No thanks

[@CesarAnton]

what an obvious paid campaign to promote a scam

[@rejnbglad258]

Is it legit?

[@CesarAnton]

@@rejnbglad258 no, run away, it's a scam

[@williamlouie569]

What is the point of having a debt limit! When you keep raising it! Default?

[@moneyhungryvisionzz7450]

They can’t pay them bills but want us to pay are bills 😂

[@jermainevaughn2698]

True 😂

[@xavierclayton9990]

Are versus our.

[@masterstacks2030]

Biggest ponzi scheme in human history. Borrowing from new investors to pay off old investors, classic ponzi scheme.

[@lxbeeb]

I’d hate to be the accountant having to do the books for them

[@SiLoMixMaster]

You'd get to bill a lot of hours though Mr Kim

[@envysmith6832]

For people in accounting or financial planning who have been asked to keep redoing the numbers to make the burecrats feel good despite what reality suggests, there's a certain limit of stress one can take before cracking under all the pressure and stress, and no amount of money will make anyone remain in the post. Trying to weasel a valid loss into a profit is soul crushing that a person feels that they're doing fraud doing so.

[@the_platform]

His name is Gary. Good guy. Great Cook!

[@OneCobalt]

@@envysmith6832 just "massage the numbers" a little bit, or so I've been told at times. It's not just bureaucrats, but really anybody. Can't disappoint the client after all...

[@npvpositive9]

Just raising the debt ceiling won’t fix anything

[@coolcreep]

It will fix the issue of the US defaulting on its debts and been seen as an unreliable borrower, increasing the cost of future borrowing for decades, if not forever.

[@moonman239]

What if they pass a bill that makes the debt ceiling increase automatic: anytime the debt ceiling is hit, it is automatically raised, BUT the raise doesn't take place until 1 month after the Treasury Department enacts extraordinary measures? Basically, let the government borrow as much as needs, but make it painful to do so.

[@StretchOnYT]

Fake comments about AWZ69WTF?! Ignore this stuff

[@j.d.blitch5552]

Great video

[@whitedancer5866]

What's the point of setting a debt ceiling for myself if I can raise it whenever I need to LOL?

[@v_x_]

Fair opinion on AWZ800X now that a big brand is entering the scene I believe we can have big shifts at all markets not only the AMZ market

[@gigachad-jh1dh]

Absolutely no.

[@henrylivingstone2971]

Bot

[@karenishness1]

Why are Zillow and EBay selling worthless properties that can't be lived on? Hiding the fact they have horrible building codes, then hiding the sales information later?

[@jasperliew1030]

Great news .

[@55Days]

Wait, this summer?

[@user-cw2py6wh8l]

Just get rid of government pension and high salary.

[@keysglim]

For the one that following the economic n finance market, I need to pickup my math again for being forward looking. Really what is it after trillion...

[@pito6979]

How much debt ceiling 10 yrs from now. 50T, 100T.

[@hbarudi]

This country cannot continue like this at all, not to mention this is only 1/3rd of all the DEBT in USA. Lenders need to tighten and reduce lending.

[@Sconechoc]

No, they just need to give to people who will pay it back instead of people who are bad with money.

[@mikelixx]

There is no ceiling or limits....

[@cuzmariosaidso]

Yes there is, interest rates.

[@aviaforrester1481]

Pay, it.

[@carterwilson3169]

This makes me sick to my stomach

[@tamekkaknuth9612]

By having someone arrested

[@gerardparker4220]

We are spending over $800B in defense every year. If we cut that to 500B for 3 years, we’d have an extra $1T buffer on the deficit.

[@Sconechoc]

It’s at 31 trillion they’ll be long dead before it’s their problem.

[@aviaforrester1481]

Pay.

[@sungenhou]

Brandon: just keep the printer running non stop…..

[@thomasucc]

Give it to consumers, not financial groups

[@nae4830]

There’s a version of the same topic every year.

[@parrsnipps4495]

We live in a gated community & they spend more than we pay in assoc. fees, so they keep increasing them & we keep asking them not to take on more projects. So it's no different at the local level. Once someone is in a position of power, they want to spend $$$$$$$$$$$$$$$$$$$$$$.

[@winnerwinner2330]

to cut on spending's to pay back this massive debt isnt bad

[@miaburton6251]

Right now there is a shortage of workers and many young people don’t want to go to college because of the high cost, if the United States don’t do anything towards this issue it’s going to be worst going forward. There going to a lot of jobs but no one to fill them. Which means the qualifications will have to go down just to fill the openings.

[@OneCobalt]

Or we can expand paths to legal immigration here. The demand is there, the supply is available, but for some reason there's a particular party who refuses to negotiate on immigration. Immigration is what sets us apart from many large economies. Look at Japan's stagnation for decades to see what happens when you have a developed economy but are averse to immigrants. We'll see the same thing with China in a couple decades as their population time bomb explodes. Many of the younger generation consider it too expensive to have kids, that having kids is now a luxury and no longer a basic expectation. If you can't get your population to grow internally, you need to start looking externally.

[@jericasantos64]

Ugly truth is not easy to digest. We just need to accept it and deal with it. It's about time to put on the table and talk about the truth and that's cloaked in secrecy and deal with it instead.

[@shellysmith1037]

reckless and wasteful spending....a hallmark of this administration. A shame, we could have done so much better,

[@michaelpowers6632]

When you borrow money, you get quick gains and then it eventually becomes HUGE losses. Simple example: A person finances a new car for $31,000 at 5% interest over 6 years. They quickly drive off the lot with a car. After 6 years, they’ve paid $36,000 on a car worth $8,000 today. That’s a big loss for a car. Congress is doing a similar thing but with an extra 9 zeros on the end

[@farmerjohn6526]

A car is not an investment. During that time period, the person drove to work, earning money to pay for the car. Basically, the car is a tool allowing the person to work. Public transportation is not good enough.

[@michaelpowers6632]

@@farmerjohn6526 you can do that and turn a $5,000 into a $500 car and not have a car payment. Instead, people want to have a $500 car payment rather than put $500 towards retirement and drive a not great vehicle

[@Timeculture]

@@michaelpowers6632 really really well put! Having a car isn’t the problem, having a really really expensive car you cannot afford is. Don’t live in d US but I can tell you from where I’m at that you people need to go back to first principles (lower your spending). But all the conformists in the your govt. will never openly say it or vote for it.

[@Sconechoc]

@@michaelpowers6632 retiring is for the lazy people it’s time to work.

[@michaelpowers6632]

@@Sconechoc lol so my fiancée’s grandpa is lazy for retiring after farming corn and beans on 1000 acres of land for 70 years and being worth over 10 million dollars? Am I lazy for working 50 hours a week and taking an independent study class in data science to advance my degree in mathematics? Is my step-dad lazy for being an engineer for 25 years and rebuilding the inside of his house but wants to retire in 10 years?

[@tommyandrews4992]

If you say please i will be happy to write a check for this debt in America

[@Melanie-gu4cl]

If the default on the debt ceiling will cause interest rates to rise for borrowers, will interest rates for CDs also rise?

[@archiey2k1]

treasury bubble

[@bunga_renda]

there s a limit for everything ..

[@blipblop92]

How about stop spending on stupid projects like funding electric vehicle tax credit. I love EVs and I own them but taking money from John to give to Jimmy doesn't sound fair.

[@waywardgeologist2520]

A tax credit isn’t spending money but allowing people to keep more of their own money, but I agree let’s stop spending.

[@skydiver1013]

Notice how not one person in this video mentioned what the annual Interest is on that debt.

[@Timeculture]

This isn’t really reporting. It’s just propaganda. Telling the people these are your problems and these are your options.

[@skydiver1013]

@@Timeculture I know the annual Interset is well above $500 Billion a year. The real numbers on the Interest to service the debt is hidden from the public.

[@25decastro]

why is cutting of spending called taking hostage of the debt ceiling? isn't it actually the right and logical thing to do?

[@generalmike-jo1cv]

next week, june 1 already

[@sasquatchwithinternetacces2940]

Stop spending money we don't have. The longer we delay the inevitable the worse it will get. Imagine if private citizens were allowed to raise their own debt ceiling when they can't even cover interest on loans already taken out. Let's take our lumps now and move forward or treat everyone like the govt and just declare all debt a made up.

[@coolcreep]

This isn't about new spending, it's about spending that has already been committed to. And the US can easily cover its interest, there is tons of demand for US govt treasury bonds, they just aren't allowed to sell anymore because of this self-imposed limit.

[@piplupempoleon4225]

​@@coolcreep wait till other country start to ditch us dollar as reserve currency

[@williamandrews781]

The noise is NOT music!! It ridiculous!!

[@maxshiraz3447]

No more debt, none. Massive spending cuts, governe=ment needs to get out of the SS and medicare business - they need to be privatized.

[@TahoeJones]

Popeye's character Wimpy economics. "I'll gladly pay you on Wednesday, for a hamburger today".

[@studioty9295]

Guys someone explain it i can't understand this

[@HowieSmith-xh9xe]

Always amazes me there is never any mention of who this money is owed to exactly and before some no it all comments the FED or Reserve bank, I'm talking names... Who are the people owed 31 Trillion

[@Ry____]

Let that day come. I’m tired of previous generations burying my generation in debt. Enough is enough.

[@GSD-]

This whole crisis is hysterical. Debt payments are a promise. Discretionary military and social welfare spending is not. The federal government also owns about half of the western continental U.S… there will be no default and there doesn’t need to be a debt ceiling hike.

[@magmomwise]

The lack of well thought out Federal Budget that is ever increasing is becoming a disaster for America. Government budgets at all levels Local, State and Federal are loaded with wasted dollars. These wasted tax dollars are very obvious but all government departments are not encouraged to plan out their yearly budget and cut unnecessary spending but on the contrary spend every cent in their current budget and ask for more for the next fiscal year. Massive lack of fiscal control has put America in this position. Cutting government waste at all levels would be a very good start saving $10s of billions of dollars each year or more to be applied to the national debt. Look at it this way at our current national debt every American citizen would have to pay about $690.00 per day in taxes for a year to pay off their portion of the debt. The means each person would have to make about $90.00 per hour and work 10 to 12 hrs per day 7 days a week to make it happen. That will never happen. Take away the governments credit card.

[@Bonjour-World]

Make Congressional payments the lowest priority and the problem will be solved.

[@levimusicofficial9070]

It will take some time to understand how Amazons AWZ800X is having the most impact in these times. After all the downswingers and failures of this year it's about time that someone integrates assets into a useful scenario and that's exactly happening with this asset right now. It will be exciting to see how they develop this product in the future. What do you guys think? Would like to hear some opinions

[@gigachad-jh1dh]

No.

[@raufai4723]

Amazon will remake the entire game after all the bad players

[@turkoyunCu164]

Project of the year 2023 easily

[@luckyshield2114]

This will be the biggest change we've seen yet. Mark my words. If you ignore this you'll be mad tomorrow

[@Changbinim]

1 USD pricefloor, so if you hold it you can't lose for now, unlike 99% others. Even stablecoins are at risk, see Tether

[@JR-be1jf]

The debt ceiling can't be raised limitless

[@isaiah24.5]

Don’t raise and don’t payback the Private Federal Reserve… go back to Gold and Silver Certificates.

[@jackb3493]

Yeah, but just ignore the hundreds of billions in off-shore corporation banks

[@juhyokang2571]

31 ok

[@ionut9921]

They've already failed 3 times throughout history so far, and they've pulled it off every time. (they made more money) 1. 1934 default on Liberty Bonds 2. 1971 default Nixon closed the gold window (bank run by international banks) 3. April-may 1979 on Treasury bills because of computer malfunctions

[@Ilovecruise]

But things are different now, the world are interconnected, people are losing trust.

[@ionut9921]

@@Ilovecruise So? What is the ideea?

[@phyybalance2601]

What do u think? The US can write it off, the greatest nation in the world. Don’t worry!

[@ionut9921]

@@phyybalance2601 sure, China is coming hard from behind😉

[@drrexol]

Here is the way to not raise the dept Stop all revenue sharing with the states

[@RandomGuy-nm6bm]

"First world country" everyone...

[@douglaswong6975]

DJ 30 have approximately USD 10 Trillions cash doing nothing, corporate invasion?

[@guglielmosolimene7997]

President Janet Yellen,i receive,I follow , Tank you for notification from you tube

[@quinnrimmer3884]

somewhere sometime two people with the last name Rand are laughing

[@VastKnowledge2023]

Send more money to Ukraine after raising the debt ceiling once again!

[@DRKrust492]

I agree. Do both.

[@davidg9927]

It can never be paid

[@rhou568]

Are we begging other countries to buy US treasury bond (or not to sell it)?

[@OneCobalt]

Most US debt is owned by Americans, not foreign countries, so no we are not begging other countries to do anything with it.

[@RoobieRhoo]

We do not need a debt ceiling. Congress has the sovereign constitutional authority to borrow money to fund legislation passed by a majority vote of congress and signed into law by the president. Congress already has the purse strings, and using the debt ceiling to defund lawful legislation signed into law is unconstitutional by defaulting on our lawful debt. The 14th amendment, section 4, clearly states the lawful debt of the US shall not be questioned. Furthermore, the Perry decision does not allow the congress to invoke the will of the people to withdraw or ignore our debt acquired on the pledge of full faith and credit of the United States because doing so, "assumes the constitution contemplates a vain promise."

[@aloksengupta4727]

If only Venezuela could do the same.

[@kshitijgupta3272]

I bet Nasdaq will take off if US defaults. All the money leaves treasury and goes into tech.

[@ianbuick8946]

My 7 years old kid understand he can't keep on borrowing money and spend more than what he earn. Eventually it will collapse, the question is are we prepared with self-sustained life?

[@ScooniePenn10]

increasing the money supply and continuing the QE efforts is a major reason for the inflation spike.

[@benjamindover4337]

So it isn't corporate price gouging?

[@newstartyt3700]

then why did inflation only increase in the 2020s, and it remained flat in the 2010s, when QE was in full swing?

[@Operationfocus]

​​​​@@newstartyt3700 Its only recently that the Federal Reserve and other central banks decided to start unwinding QE. This is known as QT or Quantitative Tightening. You see the government bonds that the central banks purchase are put on to their books. Eventually when the bonds they bought come to maturity they need them off their books so will sell to investors. Now the Bank of England states "The money we created to buy the bonds and overall amount of money in the economy goes down" Except they are wrong, the money they created was put into housing by commercial banks, hence the rise in housing year on year. Or put into the stock market hence why it has also been inflated. With higher house prices and financial assets an inflated economy meaning inflation and the central bank needing to now use higher interest rates to control access to borrowing.

[@brendansmith7842]

How does this compare to Canada, the uk, and Europe? Europe has worse inflation and they aren't raising rates. This has its own issues too.

[@mjkay8660]

they will vote on giving themselves a raise before they raise the ceiling, like they always do

[@MS113MS]

Debt ceiling will surely be raised eventually.

[@hammersampson]

How can Congress pass a budget without increasing the debt ceiling? This in 1000% the fault of Congress.

[@OneCobalt]

It's actually even more specific, it is the fault of House Republicans. Back before the GOP took the House in 2011, there was something called the 'Gephardt Rule,' which essentially made it so that when the House passed a budget bill it was also considered an automatic raising of the debt ceiling. That is why it seems we are more and more often getting into these debt ceiling battles, it just wasn't as much of a problem between the 1970s and the 2010s because budget bill votes were also votes to raise the debt ceiling in the amount of the budget. The House GOP got rid of it after taking over in 2011. Budget bills must originate in the House, so it is one of the few areas where the Senate is just along for the ride instead of being able to put up its own budget bill (though the Senate must ultimately vote in favor before it goes to POTUS for signature). The White House, House Dems, and Senate Dems are all supportive of raising the debt ceiling, and I'd bet that a handful of Senate GOP would approve to get past the filibuster. So it truly does come down to the House GOP as the ones causing all this heartburn.

[@theworldofswynn6622]

Same story. New year.

[@davidcantor293]

Raise the debt ceiling? How about reducing tax cuts.

[@Kaslor1000]

money printer go brr

[@mangs9940]

Don't worry, this is just theatre. The dept ceiling will just be raised again and again and again and again .......

[@mangs9940]

@eric kanter I am not that sure. If you control the reserve currency of the world, then you have a very strong position.

[@TheVboy1]

That's why she's flying to China to ask her to buy more debt

[@Smiley66833]

Why would China want to buy more debt?? China understands the West very well so... No thank you!! Maybe India can help or Japan??

[@khongvincent6877]

Debt ceiling must pay the interest rate when time up. Then declare recession and downgrade US dollars immediately. IMF cannot allow US country Govt just up the debt ceiling increase ,then pay the interest rate first! UN security council affairs must pay by US country Govt.lf not all countries will vote for change to other countries on 5 permanent countries for 4 to 5 years routine. Action now!

[@yusefshakur669]

Raising taxes is the only way

[@user-zf2ql7sz3n]

the world's most unreliable US debt market.

[@user-yp7nc7dn4m]

ولمذا.هذا.الرقم.الرهيب.سيدتي.الكريمه.ان.كان.هذا.خدمتا.لنا.فاصرف.النضر.واتركو.الحاله.ما.هيه.وشكرا.سيدتي.علي.هذا.التوضيح

[@jtgd]

Just end the limit

[@cmf.atwill]

But Taxpayers still give $$$ to fund Drag Shows in Ecuador.