The U.S. government is expected to hit the $14.294 trillion debt ceiling Monday, setting in motion an uncertain, 11-week political scramble to avoid a default.
The Treasury Department said Monday it will stop issuing and reinvesting government securities in certain government pension plans, part of a series of steps designed to delay a default until Aug. 2.
The U.S. government has hit the debt ceiling before, most notably in 1995 and 1996 when the Clinton administration and House Republicans squared off over government spending. Eventually, though, lawmakers reached deals and the country hasn’t defaulted on its debt in modern history.
Try not to fall for all of the media spin and end of the world theories. Find the facts and react as you see fit.
Beware of cutting deals that involve increasing the debt limit and cutting spending. Reagan made a deal with Congress to cut spending, and they never held up their end of the bargain.