DEBT CEILING

The maximum amount of monies the United States can borrow. The debt ceiling was created under the Second Liberty Bond Act of 1917, putting a "ceiling" on the amount of bonds the United States can issue. As of the end of July, 2011 the debt ceiling was set at $14.3 trillion. It was created under the Second Liberty Bond Act of 1917 and it states there the maximum amount of money that the United States can borrow. Also known as the "debt limit" or "statutory debt limit." There has been controversy over whether the debt ceiling is constitutional. According to the 14th Amendment of the Constitution, "The validity of the public debt of the United States, authorized by law shall not be questioned." The majority of democratic countries do not have a debt ceiling, with the United States being one of the exceptions.

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