The US Debt Ceiling

What is the Debt Ceiling? The Debt Ceiling is the limit on the amount of money the United States gov- ernment is allowed to borrow in order to pay its bills. When the limit is reached it hits a“ceiling"- no additional money can be bor- rowed by the government. This is done to prevent runaway spending. US Con- gress establishes the debt ceiling based on the existing legal obligations it has committed to pay. lution to increase it. If the debt ceiling is not raised, then the US must use its cash on hand to pay its bills. If the government is unable to pay its bills it will default on its debt. When the debt limit is reached, Congress must pass a reso- THE DEBT CEILING US Expected to reach borrowing limit on October 17, 2013 CURRENT BORROWING LIMIT OBAMA 13 $16.7 TRILLION $16.7 TRILLION PREVIOUS DEBT CEILINGS DEMOCRAT BUSH 08 $10 TRLION REPUBLICAN WRLD BUSH 01L $5+ TRLLION CLINTON 93 $4+ TRILLION WorldSolo Index At time of publication 474.86 Source: Department of Treasury 10/16/13, 12:00AM