I have been trying to understand some of the arcane issues surrounding the way the US government is run and what follows is what I have been able to learn. Take it with a grain of salt since I am neither an economist nor an accountant.
The current debt limit, the maximum amount that the government is allowed to borrow, was raised on May 19, 2013 to $16.70 trillion, which is projected to be reached on October 17, 2013. When the government’s expenditures exceed the amount it has in its checking account, the government is authorized to sell US Treasury notes to raise cash make up the difference provided the total amount does not exceed that limit. [Read more…]