How the deadline for the debt ceiling is determined and what is happening after: planet money: NPR

Jemal Coutessesse / Getty Images for the Peter G. P.

Jemal Coutessesse / Getty Images for the Peter G. P.

Note: a version of this episode was broadcast in 2023.

Each year, the American government spends more money than it takes. In order to finance all these expenses, the country in the late country. Congress has the power to limit the debt of the United States. Once we reach this limit, the congress has some options so that the government continues to pay its bills: increase the limit of debt, suspend or eliminate it entirely.

What is intimidating, because if legislators do not understand something over time, ramifications for the global economy could be enormous.

Shai Akabas, from the Bipartisan Policy Center, has become something of the essential expert in the calculation of the exact date that America would reach the wall and could not pay all its debts. This day is so terrifying that it has a special name, date X.

Today’s episode concerns the way Akabas and Jay Powell – well before becoming president of the Federal Reserve – worked to create a system to determine the X -Date in the hope of helping us all to never reach it.

We also have an update on this year’s X-Date, which could arrive this summer.

This original episode of Planet money was produced by Sam Yellowrson Kesler with the help of Alyssa Jeong Perry. And designed by Josh Newell and checked by Sierra Juarez. He was published by Jess Jiang.

Today’s update was produced by James Sneed, designed by Jimmy Keeley and published by our Executive Producer Alex Goldmark.

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Music: “Euphoria Funk“”Darkman X” And “Invincible. “”