The U.S. government has hit the $14.294 trillion debt ceiling.
The Treasury Department will have cash on hand until August 2 as it will stop issuing and reinvesting government securities in certain government pension plans. However, given that the government plans to continue other spending, if the debt ceiling is not raised before August 2, the U.S. government will start to default on payments due, at that time.
Please clarify this for someone who is very confused on this issue. I have read that the US could still service their debt and payoff 2/3 of domestic expenditures if the debt ceiling is not raised. Is this true or would we hit immediate default? Thanks...
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