<p>Debt is between US govt and The Fed.</p>

<p>If the Fed reset the debt back to 0 and bail out the govt, nothing changes. The next debt epoch starts. </p>

<p>Viscious if my understanding is correct. No other govt in the world has this freewheeling !!</p>

CC BY-SA 4.0
2018-06-30T02:06:34.873Z
2018-06-30T02:06:34.873Z
Google User Google User
<p>So I just want to make sure i got this right,</p>

<p>The national debt ceiling was suspended, i.e. the government can now freely spend until Dec.8, which they "say" was for providing $15bn in hurricane relief.</p>

<p>But lets face it, the treasury was running out of "extraordinary measures" to keep the debt below the ceiling, thus the extension. Source -> <a href="http://www.businessinsider.sg/us-debt-20-trillion-how-much-2017-9/?r=US&amp;IR=T" rel="nofollow noreferrer">http://www.businessinsider.sg/us-debt-20-trillion-how-much-2017-9/?r=US&amp;IR=T</a></p>

<p>The debt increased by 317 billion. But that aside, I want to get into the economics fundamentals. What does this mean for the dollar?</p>

<p>So foreign debt is increased, I am assuming the USD is going to plummet if expectations of quantitative easing to pay off the debt increases?</p>

CC BY-SA 3.0
2017-09-18T17:00:02.653Z
How do you know its foreign debt?
Giskard
CC BY-SA 3.0
2017-09-18T17:18:18.240Z
@denesp I don't actually know the details, but i wish to understand the underlying economic concept of what happens to the exchange rate after debt increases. Would there be a huge difference between domestic and foreign owned debt? The failure to repay it either way seems to suggest quantitative easing, but If so could you phrase it in an answer below? Thanks!
MH.Q
CC BY-SA 3.0
2017-09-18T17:18:40.917Z
Just for a fun tidbit - https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124
MH.Q
CC BY-SA 3.0
2017-09-19T07:54:21.357Z
Just as another point, most countries don't even have a debt ceiling. They spend what they need when they need it and issue bonds to cover it. It's a fabricated problem unique to the US.
serakfalcon
CC BY-SA 3.0
2017-09-27T07:54:16.440Z
The US Government might have defaulted in September.  It will now not default until at least December.  That should increase short-term confidence to the extent anybody thinks default is a measurable possibility, reducing interest rates by a small amount, though the effect on exchange rates is less clear (higher confidence might increase the value of the US dollar in the short term, but lower interest rates could offset this)
Henry
<government-debt><quantitative-easing>
Extension on the suspension of national debt ceiling
MH.Q
# Extension on the suspension of national debt ceiling

(Asked by: username_0 on 2017-09-18)

So I just want to make sure i got this right,

The national debt ceiling was suspended, i.e. the government can now freely spend until Dec.8, which they "say" was for providing $15bn in hurricane relief.

But lets face it, the treasury was running out of "extraordinary measures" to keep the debt below the ceiling, thus the extension. Source -> <http://www.businessinsider.sg/us-debt-20-trillion-how-much-2017-9/?r=US&IR=T>

The debt increased by 317 billion. But that aside, I want to get into the economics fundamentals. What does this mean for the dollar?

So foreign debt is increased, I am assuming the USD is going to plummet if expectations of quantitative easing to pay off the debt increases?

**Tags:** government-debt, quantitative-easing

> **Comments:**
> **username_1**: How do you know its foreign debt?  
> **username_0**: @denesp I don't actually know the details, but i wish to understand the underlying economic concept of what happens to the exchange rate after debt increases. Would there be a huge difference between domestic and foreign owned debt? The failure to repay it either way seems to suggest quantitative easing, but If so could you phrase it in an answer below? Thanks!  
> **username_0**: Just for a fun tidbit - https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124  
> **username_2**: Just as another point, most countries don't even have a debt ceiling. They spend what they need when they need it and issue bonds to cover it. It's a fabricated problem unique to the US.  
> **username_3**: The US Government might have defaulted in September.  It will now not default until at least December.  That should increase short-term confidence to the extent anybody thinks default is a measurable possibility, reducing interest rates by a small amount, though the effect on exchange rates is less clear (higher confidence might increase the value of the US dollar in the short term, but lower interest rates could offset this)  

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## 1 answers

### Answer by username_4 on 2018-06-30. Score: -2

Debt is between US govt and The Fed.

If the Fed reset the debt back to 0 and bail out the govt, nothing changes. The next debt epoch starts.

Viscious if my understanding is correct. No other govt in the world has this freewheeling !!


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