Absolutely everything you need to know about the debt ceiling - WaPo

[Bill USA]

this is a very good article explaining this issue:

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/04/absolutely-everything-you-need-to-know-about-the-debt-ceiling/

The federal government is still shut down. But there's more mayhem to come: Congress has to deal with the debt ceiling. If lawmakers don't vote to increase the nation's borrowing limit by mid-October, the U.S. government won't have enough money to pay all its bills.

The debt-ceiling crisis could be the most serious one yet. The U.S. Treasury Department says that a failure to raise the borrowing limit could potentially trigger a debt default, which would lead to "a financial crisis and recession that could echo the events of 2008 or worse."

Republicans in Congress say they don't want a default, but many members also don't want to approve any new borrowing until the Obama administration agrees to make certain policy concessions. It's a standoff.

So it's time to take a detailed look at what, exactly, the debt ceiling is, why we even have one, and whether apocalypse would really occur if Congress doesn't lift it before Oct. 17.

What is the debt ceiling?





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