The United States federal government has been shut down since Tuesday. Thousands of workers are furloughed, national parks and monuments are closed, and Congress is still getting paid.
What’s worse is this may not be the biggest crisis the US faces this month.
Later in October — or early November at the latest — the Treasury department will hit the “debt ceiling” and max out its credit line. The debt ceiling is a legal limit placed on the Treasury by Congress that says the US cannot have more than X amount of debt. That amount right now is $16.699 trillion.
Both parties have said they will have no part in a United States default on debt due to not raising the debt ceiling, so that’s encouraging. Yet each day that rolls forward means we are getting closer and closer to not being able to make our minimum payments on all of our obligations. If we default expect widespread chaos in financial markets, Treasury bill interest rates, and the value of the dollar.
Let’s hope it doesn’t come to that.
Maxing out your credit cards, too? Can’t seem to control how much you spend? Here are some articles to help you out:
Bloomberg | Twitter Look-Alike Ticker Triggers 685% Advance in Penny Stock
Consumerism Commentary | Real Financial Progress Requires Quantum Jumps
Budgets Are Sexy | What I Learned About Money Growing Up in the Former USSR
Money Beagle | How One Twig Almost Cost Us Thousands of Dollars
CNN Money | Is Obamacare Cheap or Pricey? The Verdicts are In.
20s Finances | What % of Your Income Do You Need in Retirement?
My Personal Finance Journey | How to Save Money with the Heating and Cooling of Your Home
Retire By 40 | Early Retirement Investing 101: Rebalance Your Portfolio
Get Rich Slowly | The Power of a Zero-Sum Budget
Free From Broke was featured in the following carnivals this week:
Carnival of Personal Finance — Rainy Days, Wine, & Dorking Out