Peter G’s Gemal Counter/Getty Images p
Peter G’s Gemal Counter/Getty Images p
Note: A version of this episode was first run in 2023.
Every year, the US government spends more money than it takes. The state will undertake debts to fund all of that expenditure. Congress has the power to limit how much debt the United States will incur. Once that limit is reached, Congress has several options and allows the government to continue paying bills. It will raise, suspend, or completely eliminate debt restrictions.
This is difficult because if lawmakers don’t understand something in time, the global economy’s impact can be enormous.
Shai Akabas, the Center for Bipartisan Policy, has become a go-to expert in calculating the exact dates that America has hit a wall and cannot pay all its debts. This day is so scary that it has a special name, X-Date.
Today’s episode is about how Akabas and Jay Powell worked long before they became the chairman of the Federal Reserve, creating a system for determining X-Date in the hopes of helping us all not reach it.
We also have the latest updates on this year’s looming X-Date. This could arrive soon this summer.
This original episode of Planet money Produced by Sam Yellowhorse Kessler with the help of Alyssa John Perry. Designed by Josh Newell and fact-checked by Sierra Juarez. Edited by Jess Jiang.
Today’s update was designed by Jimmy Keeley, produced by James Sneed, and edited by executive producer Alex Goldmark.
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music: “Euphoria funk“”Dark Man X” and “invincible. ”
