The United States is obliged to make decisions on the debt ceiling

Members of Congress in the United States of America approved the debt or spending ceiling in 1917. This policy sets a ceiling on the money that the North American government can owe.

Currently, the debt limit is much higher than it was set a century ago. Currently, more than $31 billion is owed.

As of 2001, annual obligations approached $1 billion. This situation forces management to borrow money to pay off their duties.

With the loans required by the state to solve its operations, the spending cap is raised. This January, the US government reached the pinnacle of debt.

For this reason, Treasury Secretary Janet Yellen warned that important decisions must be taken so as not to fall into a financial crisis. Ms. Yellen added that an increase or suspension of spending caps would have to be legislated.

With this measure, the authorities will prevent delays in payment agreements. Janet Yellen noted that the nation never defaulted on its commitments.

Expenses rise frequently

The maximum period for issuing a decision to increase debt is the first day of June 2023. Analysts believe that at that moment, the state budget will run out and a catastrophe will occur in the national economy.

Actions by Congress to raise the debt ceiling have been repeated throughout American history. The last example is found in the recent past, specifically in the year 2021 with the financial laws to deal with Covid-19.

Another occasion occurred in 2011 with Barack Obama. The president had to increase spending, with two days left to unload the money.