The Lifting of Debt Ceiling: How Will It Impact the Economy?


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Of all the things the government could have done, they decided to ensure the US dollar will get devalued.

In an effort to avoid the US defaulting, the congress suspended the debt limit until the first quarter of 2025, beyond the 2024 elections. Rather than raising the debt ceiling by a specific dollar amount, suspending it allows Congress to define a period of time before the debt limit would need to be addressed again. Taking this approach ensures that it can’t be used for political advantage during the campaigns. It leaves the next fight over the debt ceiling for the new administration and Congress soon after the 2024 elections.

The question is how will it affect the economy.

Hi, this is Ivory Hecker for Noble Gold News.

Money printing

Money printing, that’s what we will resort to.

In order to pay our obligation, the fastest and easiest route is to print money. And with the lifting of the debt limit, that’s what the government will likely do.

However, if governments print money to pay off the national debt, inflation could rise. This increase in inflation would reduce the value of bonds.

It goes back to supply and demand. Increasing the money supply by, say, $32 trillion only introduces $32 trillion more into the economy. It doesn’t magically conjure $32 trillion worth of goods.

More dollars chasing the same amount of goods would cause prices to spike — in a major way.
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