🚀 go-pugleaf

We said all along that his "stimulus package" was nothing but a
tremendous waste of taxpayer money and the result of gross
inexperience and again we were correct.



By Jeanne Sahadi, senior writerJanuary 20, 2011: 5:56 PM ET


NEW YORK (CNNMoney) -- The amount of U.S. debt subject to the
country's legal maximum has topped $14 trillion for the first time.

On Wednesday, the amount of debt subject to the cap hit $14.001
trillion at the close of trade, according to the daily Treasury
statement released on Thursday.



That means the country is less than $300 billion away from the $14.294
trillion debt ceiling, which is a cap on how much the federal
government can legally borrow.

The debt ceiling has become a focal point of the debate over spending
and debt. Even though congressional leaders say the cap will be
raised, Republicans are vowing to use the issue as leverage to force
spending cuts.

The Treasury Department estimates that borrowing could reach the cap
sometime between March 31 and May 16, according to a letter Treasury
Secretary Timothy Geithner sent to Congress earlier this month.
Debt ceiling: Geithner won't let U.S. default

While Treasury has certain measures it can take to postpone a breach
from occurring, Geithner said they would only last "several weeks."

He urged lawmakers to act soon to raise the ceiling, warning that
failure to do so would be disastrous for the economy and for
Americans.

Although the debt ceiling has never been reached -- so it's impossible
to say definitively what would happen if it were -- budget and debt
experts warn that no good can come of it.
Debt ceiling: What you need to know

If U.S. borrowing hits the ceiling and lawmakers fail to raise it,
Treasury would be prohibited from borrowing more money. Barring
immediate and draconian policy changes, the country would be unable to
pay its bondholders or fund programs and benefits in full. That's
because there wouldn't be enough tax revenue coming in to cover all of
the country's bills.

Experts say the cascade effect would be crippling not only to the U.S.
economy but very likely to economies and markets worldwide.

At a minimum, a default could pummel U.S. bonds, the dollar and U.S.
investors' portfolios.