1 thought on “What are the consequences of increasing the debt limit?”

  1. 1. Increased the consequences of debt limit will lead to an increase in the amount of investment in the currency market and exacerbate global inflation. Therefore, while increasing the upper borrowing limit, it is necessary to reduce government expenses and reduce government expenses. Enterprises can continue to operate to ensure employment in stable employment. This is the key point of the Republican and Democratic wrestling. The so -called debt is pointed to the money borrowed from others. The upper limit of debt is the highest standard for borrowing money for yourself. The upper limit of debt is to stimulate economic development, and in the absence of reaching the upper limit, we hope to further meet the demand by borrowing more money.
    2, the upper limit of debt refers to the maximum debt tolerance of the normal operation of specific institutions. According to the income and expenditure ratio, the remaining debt tolerance is deducted from the income and expenditure ratio. The remaining approval is incomplete, but when the debt is greater than the inherent assets and the total operating cycle income cannot maintain debt repayment and sustainable operation, asset autonomy will no longer be enjoyed.
    The expansion information:
    1, the impact of debt upper limit on the stock market: First of all, it is clear that the United States has not suffered a crisis of economic crisis. At present, it is facing the subprime crisis. It is only a part of the economy. The subprime mortgage crisis affects the world, and it is necessary to pay for the United States all over the world. Not to mention that banks will be somewhat US Treasury bonds. Bank of China and Industrial and Commercial Bank of China today announced the sub -loan influence data. According to the 2007th and third quarterly reports of the Bank of China, the Bank of China held by the Bank of China has been declining with the asset size of the United States. At the time of the interim report, some ABS of the Central Behavada calculated 38.8 billion yuan in impairment preparation, and the impairment preparation for some CDOs was 75.8 billion yuan. Make an impairment preparation for US $ 13.5 billion and $ 18.7 billion. At this point, the cumulative impairment preparation of the secondary behavior is more than 354.47 billion yuan, which is compared with the total face value held by the Bank of China at that time at the time. It is 6, 15%. In addition, it will affect real estate. Domestic A -shares are semi -closed markets. There is its own independent trend, and the impact will not be too great. Instead, it will take the opportunity to adjust

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