169: The Debt Ceiling—What Happens If the U.S. Defaults

What could happen if the U.S. Congress doesn’t raise the debt ceiling and defaults on U.S. financial obligations.

In this episode you’ll learn:

• What is the federal debt ceiling and why does Congress always wait until the last minute to raise it.
• How long has the debt ceiling been in place.
• What would be the consequences of default by the U.S. government on its obligations.
• Why does the government continue to run a budget deficit instead of a surplus.

Show Notes

The Debt Limit: History and Recent Increases – D. Andrew Austin – Congressional Research Service

U.S. Department of Treasury debt limit documents

Debt Limit: Myth vs. Fact – U.S. Department of Treasury

Here’s What Happened the Last Time the U.S. Defaulted on Its Debt – Matthew O’Brien – The Atlantic

The Debt-Ceiling Crisis Is Real – Edward D. Kleinbard – New York Times

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Federal Reserve Insolvency and Monetizing the National Debt

The Great National Debt Debate

How Worried Should You Be About the National Debt?

433: What Happens If The U.S. Defaults On Its Debt? Here’s Why It Won’t

Transcript