The US Constitution requires Congress to authorize debt issuance. Prior to WWI, the US Congress passed legislation for each separate issuance of Treasury securities. During WWI, the debt ceiling concept was introduced so that within a set limit, the US Treasury could issue debt without coming time, there were no controversies surrounding raising the debt ceiling to cover spending already authorized by Congress. During the late 1970s which automatically raised the debt ceiling as part of authorizing new government spending requiring Republican Newt Gingrich, voided the Gephardt Rule separate from funding the federal government.
The latest two debt ceiling crises were in 2011 and panic was fresh in the memory and there was the ongoing European sovereign-debt crisis. Standard & Poor’s downgraded the credit rating of the United history.
The next debt ceiling crisis began in January 2013 with the debt ceiling at $16.4 trillion, which had been set following the debt ceiling crisis of 2011. The measures to enable payments. Once the Treasury ran out of options, the issue was forced, and the crisis ended on October 17, 2013, with new legislation continuing the funding of the federal government and raising the debt ceiling.
now running at over $1 trillion per year and growing. 2009 to deal with the Great Recession, but through spending controls from 2010 through 2016, the near 3% of GDP as the economy grew steadily, dramatically for the worse after the passage of the massive corporate tax cut in December 2017. Economic growth did not respond remotely enough
Chart 1: Saudi Net Foreign Assets vs. Brent Crude Price
Source: Bloomberg Finance L.P.
25 | ADMISI - The Ghost In The Machine | May/June 2019
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