The United States has a statutorily imposed limit of how much outstanding debt is allowed, once this limit is reached on issuing new debt, Treasury can no longer sell bonds and deposit these proceeds, and hence accounts at the Federal Reserve will dwindle as they are now only fed by ongoing taxes, which are insufficient to cover all spending. This limit is being rapidly reached, and by mid-October (current guesstimate) the Treasury accounts will be too small to finance that day’s governmental activities.

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