Borrowing Power – Article I Section 8, Clause 2 of the Constitution

The United States Constitution

The Borrowing Clause is one of Congress’ enumerated powers found in the Constitution of the United States, Article. I. Section. 8., clause 2:

(Clause 2 – Borrowing power)

[The Congress shall have Power] To borrow Money on the credit of the United States;

 
 
 


Deficits & Debts: Crash Course Economics

 
 
 

From the U.S. Senate web site:

Congress can borrow money through the issuance of bonds and other means. When it borrows money, the United States creates a binding obligation to repay the debt and cannot repudiate it.

Piggy Bank
Creative Commons License photo credit: alancleaver_2000

You haven’t heard of the Bureau of the Public Debt before? We’re a small agency within the Department of the Treasury. Our customers are your neighbors, co-workers, and most likely you, too. You’re our customer if you’ve ever bought any type of Treasury security for yourself or, as millions have done in the case of savings bonds, as a gift for someone else.

Our job is to borrow the money needed to operate the federal government and to account for the resulting debt. In a nutshell, we borrow by selling Treasury bills, notes, and bonds, as well as U.S. Savings Bonds; we pay interest to investors; and, when the time comes to pay back the loans, we redeem investors’ securities. Every time we borrow or pay back money, it affects the outstanding debt of the United States.

Bureau of the Public Debt

More

Pocket Constitution from TheCapitol.Net
A free download of our Pocket Constitution is available on Scribd.

Our Pocket Constitution: details on our web site.

 
 
 


The Five Thousand Year Leap: 28 Great Ideas That Changed the World

The Five Thousand Year Leap: 28 Great Ideas That Changed the World


The American Patriot's Almanac: Daily Readings on America

The American Patriot’s Almanac: Daily Readings on America


Pocket Constitution

Pocket Constitution


The Federalist Papers

The Federalist Papers


The Politically Incorrect Guide to the Constitution

The Politically Incorrect Guide to the Constitution


The Ideological Origins of the American Revolution

The Ideological Origins of the American Revolution


The Essential American: 25 Documents and Speeches Every American Should Own

The Essential American: 25 Documents and Speeches Every American Should Own


The Founders' Key: The Divine and Natural Connection Between the Declaration and the Constitution and What We Risk by Losing It

The Founders’ Key: The Divine and Natural Connection Between the Declaration and the Constitution and What We Risk by Losing It


Logical Foundations of Constitutional Liberty

Logical Foundations of Constitutional Liberty


The Reason of Rules: Constitutional Political Economy

The Reason of Rules: Constitutional Political Economy


Ratification: The People Debate the Constitution, 1787-1788

Ratification: The People Debate the Constitution, 1787-1788


Constitutional Law for Criminal Justice

Constitutional Law for Criminal Justice






For more than 35 years, TheCapitol.Net and its predecessor, Congressional Quarterly Executive Conferences, have been teaching professionals from government, military, business, and NGOs about the dynamics and operations of the legislative and executive branches and how to work with them.

Our on-site training, publications, and audio courses include congressional operations, legislative and budget process, communication and advocacy, media and public relations, testifying before Congress, research skills, legislative drafting, critical thinking and writing, and more.

TheCapitol.Net is on the GSA Schedule, 874-4, for custom on-site training. GSA Contract GS02F0192X

TheCapitol.Net is a non-partisan small business.

Teaching how Washington and Congress work ™

Select publications from TheCapitol.Net

Comments are closed.