The amount owed by the federal government of the United States is part of the macroeconomics of a debt ceiling that was created when?
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History of United States debt ceiling The history of United States debt ceiling deals with movements in the United States debt ceiling since it was created in 1917. Management of the United States public debt is an important part of the macroeconomics of the United States economy and finance system, and the debt ceiling is a limitation on the federal government's ability to manage the economy and finance system. The debt ceiling is also a limitation on the federal government's ability to finance government operations, and the failure of Congress to authorise an increase in the debt ceiling has resulted in crises, especially in recent years. The debt ceiling has been suspended since October 30, 2015.
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National debt of the United States The national debt of the United States is the amount owed by the federal government of the United States. The measure of the public debt is the value of the outstanding Treasury securities at a point of time that have been issued by the Treasury and other federal government agencies. The terms national deficit and national surplus usually refer to the federal government budget balance from year to year, not the cumulative total. A deficit year increases the debt because more money is spent than is received; a surplus year decreases the debt because more money is received than spent.
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Global financial crisis in October 2008 The policy response to the subprime crisis started in earnest after Lehman’s failure in mid September 2008, accelerated after February 2009, and had become very large by September 2009. Governments have relied on a portfolio of intervention tools, but the biggest commitments and outlays have been in the form of debt and asset guarantees, while purchases of bad assets have been very limited. Announcements directed at the banking system as a whole (general) and at specific banks (specific) were priced by the markets. General announcements tend to be associated with positive returns and specific announcements with negative ones. Moreover, general announcements exert cross-country spillovers but are perceived by the home-country banks as subsidies boosting the competitive advantage of foreign banks. Specific announcements exert spillovers on other banks.
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Mexican Weekend The Mexican Weekend marked the beginning of the Latin American debt crisis. In August 1982, Mexican Secretary of Finance Jesús Silva Herzog Flores flew to Washington, D.C., to declare Mexico's foreign debt unmanageable, and announce that his country was in danger of defaulting.
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United States debt-ceiling crisis United States debt-ceiling crisis may refer to one of several disputes over the United States debt ceiling
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Social Security Protection Act of 2011 Social Security Protection Act of 2011 is a proposed change to the United States Constitution. The amendment is in response to the proposed changes to Social Security qualifications that are aiming to combat the rising debt ceiling. Advocates of the bill argue that Social Security has consistently succeeded in protecting millions of Americans from poverty, providing beneficiaries with substantial benefits while never contributing to federal debt or financial crisis. The Amendment was first introduced during the 112th Congress in August 2011, but no action was taken during that Congress.
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Trillion dollar coin The trillion dollar coin is a concept that emerged during the United States debt-ceiling crisis in 2011, as a proposed way to bypass any necessity for the United States Congress to raise the country's borrowing limit, through the minting of very high-value platinum coins. The concept gained more mainstream attention by late 2012 during the debates over the United States fiscal cliff negotiations and renewed debt-ceiling discussions. After reaching the headlines during the week of January 7, 2013, use of the trillion dollar coin concept was ultimately rejected by the Federal Reserve and the Treasury. Five days later, Senate Minority Whip John Cornyn announced that Senate Republicans would end their threat to block an increase in the debt ceiling.
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Government budget balance A government budget is a financial statement presenting the government's proposed revenues and spending for a financial year. The government budget balance, also alternatively referred to as general government balance, public budget balance, or public fiscal balance, is the overall difference between government revenues and spending. A positive balance is called a "government budget surplus", and a negative balance is a "government budget deficit". A budget is prepared for each level of government (from national to local) and takes into account public social security obligations.
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The Suffolk System The Suffolk System was the first regulatory banking system arrangement of remote banks created in the United States. Starting in 1824, the Suffolk Bank of Boston, Massachusetts, along with six other banks, created a system that required country (non-federal) banks to deposit reserve balances in one or more of the participating banks, which guaranteed that each country bank could redeem their banknotes in specie. The Suffolk Bank became one of the most profitable in the country and continued to operate under the Suffolk System until 1858, when rival institutions complained of dictatorial practices and eventually national legislation banned state banknotes. The Suffolk System was the predecessor to modern banking practices and led to the creation of the Federal Reserve that still operates today
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Debt service ratio In economics and government finance, debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country’s export earnings. A country's international finances are healthier when this ratio is low. The ratio is between 0 and 20% for most countries.
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Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 (Division A of Pub.L. 110–343 , 122 Stat. 3765 , enacted  03, 2008 ), commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis authorizing the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, and supply cash directly to banks. The funds for purchase of distressed assets were mostly redirected to inject capital into banks and other financial institutions while the Treasury continued to examine the usefulness of targeted asset purchases. Both foreign and domestic banks are included in the program. The Act was proposed by Treasury Secretary Henry Paulson during the global financial crisis of 2008 and signed into law by President George W. Bush on October 3, 2008.
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Net output Net output is an accounting concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the NIPAs, and sometimes in corporate or government accounts. The concept was originally invented to measure the total net addition to a country's stock of wealth created by production during an accounting interval. The concept of net output is basically "gross revenue from production "less" the value of goods and services "used up" in that production". The idea is that if one deducts intermediate expenditures from the annual flow of income generated by production, one obtains a measure of the net new value in the new products created.
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Sugar side letter The sugar side letter was added to the North American Free Trade Agreement (NAFTA) in last minute negotiations between the Clinton Administration and the Mexican Government before the Congress approved the North American Free Trade Agreement Implementation Act (P.L. 103-182). It altered NAFTA’s initial sugar provisions by adding one additional factor to the formula to be used to determine how much sugar Mexico could export to the United States through 2008. Mexican access to the U.S. market was initially set to be equal to the amount of its net sugar surplus (sugar production minus sugar consumption), subject to a maximum of 25000 t over the 1995-2001 period and a maximum of 250,000 metric tons in 2001-2008. The side letter changed this definition to add Mexican consumption of high-fructose corn syrup (HFCS) to the "net production surplus" definition. This change effectively lowers the amount of sugar that Mexico can sell to the U.S. market.
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Generational accounting Generational accounting is a method of measuring the fiscal burdens facing today's and tomorrow's children. Laurence Kotlikoff's individual and co-authored work on the relativity of fiscal language demonstrates that conventional fiscal measures, including the government's deficit, are not well defined from the perspective of economic theory. Instead, their measurement reflects economically arbitrary fiscal labeling conventions. "Economics labeling problem," as Kotlikoff calls it, has led to gross misreadings of the fiscal positions of different countries, starting with the United States, which has a relatively small debt-to-GDP ratio, but is, arguably, in worse fiscal shape than any developed country. Kotlikoff's identification of economics labeling problem, beginning with his 1984 "Deficit Delusion "article in "The Public Interest" led him to push for generational accounting, a term he coined and that provides the title for his 1993 book, "Generational Accounting".
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Sovereign default A sovereign default ( ) is the failure or refusal of the government of a sovereign state to pay back its debt in full. Cessation of due payments (or receivables) may either be accompanied by formal declaration (repudiation) of a government not to pay (or only partially pay) its debts, or it may be unannounced. A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, failures to abide by the terms of bonds or other debt instruments. Countries have at times escaped the real burden of some of their debt through inflation. This is not "default" in the usual sense because the debt is honored, albeit with currency of lesser real value. Sometimes governments devalue their currency. This can be done by printing more money to apply toward their own debts, or by ending or altering the convertibility of their currencies into precious metals or foreign currency at fixed rates. Harder to quantify than an interest or capital default, this often is defined as an extraneous or procedural default (breach) of terms of the contracts or other instruments.
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1996 United States federal budget The 1996 United States federal budget is the United States federal budget to fund government operations for the fiscal year 1996, which was October 1995 – September 1996. This budget was the first to be submitted after the Republican Revolution in the 1994 midterm elections. Disagreements between Democratic President Bill Clinton and Republicans led by Speaker of the House Newt Gingrich led to the United States federal government shutdown of 1995 and 1996.
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History of macroeconomic thought Macroeconomic theory has its origins in the study of business cycles and monetary theory. In general, early theorists believed monetary factors could not affect real factors such as real output. John Maynard Keynes attacked some of these "classical" theories and produced a general theory that described the whole economy in terms of aggregates rather than individual, microeconomic parts. Attempting to explain unemployment and recessions, he noticed the tendency for people and businesses to hoard cash and avoid investment during a recession. He argued that this invalidated the assumptions of classical economists who thought that markets always clear, leaving no surplus of goods and no willing labor left idle.
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Federal Reserve Bank A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. The banks are jointly responsible for implementing the monetary policy set forth by the Federal Open Market Committee, and are divided as follows:
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Federal Statistical System of the United States The Federal Statistical System of the United States is the decentralized network of federal agencies which produce data about the people, economy, natural resources, and infrastructure of the United States.
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Fiscal burden of government In economics, the fiscal burden of government imposed onto its taxpayers is the influence of the tax levied on the purchasing power of the taxpayers.
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National Debt Clock The National Debt Clock is a billboard-sized running total display which constantly updates to show the current United States gross national debt and each American family's share of the debt. It is currently installed on the side of a building at the southwest corner of 44th Street and Sixth Avenue in Manhattan, New York City. It was the first debt clock installed anywhere.
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Schumer box The Schumer box is a summary of the costs of a credit card in the United States. It is named after Charles Schumer, the New York congressman (now United States senator) who was responsible for the legislation requiring that terms of credit cards be clearly outlined in any promotional material. The law was enacted in 1988 and took effect in 1989 in the United States.