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- Congress has the power to "barrow money on the credit of the United states." There is no constitutional limit on the amount that congress can barrow.
-The Federal Government regularly practices deficit financing. That is, it spends more than it takes in each year, and it barrows to make up the difference.
-"The congress shall have power to...borrow money on the credit of the United States." -Article 1, Section 8, Clause 2, Constitution
- "A power vital to the government, upon which in an extremity its very life may depend. The binding quality of the promise of the Unites States is of the essence of the credit which is so pledged. Having this power to authorize the issue of definite obligations for the payment of money borrowed, the Congress has not been vested with authority to alter or destroy those obligations."
-The power to borrow money is essential to the existence in survival of a national government.
-Borrowing lead to DEBT!
-The Federal Government regularly practices deficit financing. That is, it spends more than it takes in each year, and it barrows to make up the difference.
-"The congress shall have power to...borrow money on the credit of the United States." -Article 1, Section 8, Clause 2, Constitution
- "A power vital to the government, upon which in an extremity its very life may depend. The binding quality of the promise of the Unites States is of the essence of the credit which is so pledged. Having this power to authorize the issue of definite obligations for the payment of money borrowed, the Congress has not been vested with authority to alter or destroy those obligations."
-The power to borrow money is essential to the existence in survival of a national government.
-Borrowing lead to DEBT!