Ides of March just ahead:
Debt ceiling rising to $9 trillion
By MARY DEIBEL
Scripps Howard News Service
10-MAR-06
WASHINGTON -- Raising the U.S. debt limit once provoked government shutdowns and roiled financial markets, but no more: Congress and President Bush are preparing to raise the debt ceiling to just under $9 trillion next week with little public notice.
Here, in Q&A format, is a look at the issue:
Q: What is the national debt?
A: It's the difference between what government spends and collects in taxes, fees and other revenues. The Treasury covers the debt by auctioning $20 billion or more a week in U.S. bonds, bills and notes as older federal securities come due.
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Q: What happens if the United States defaults?
A: That fear rattled markets in the 1990s, when the Republican Congress shut the government rather than approve President Bill Clinton's debt-limit requests, and when lawmakers threatened to impeach Clinton Treasury Secretary Robert Rubin for borrowing from federal-employee pension plans to cover the shortfall.
Today, the Bush administration has tapped federal retirement funds to avoid default so far this month. But there's no talk of federal shutdowns or impeachment now, with Congress consumed by Iraq, Iran and disapproval of the Dubai ports deal.
"There doesn't seem to be the same brinksmanship as there was in the past," says economist Catherine Mann of the Institute for International Economics. "There IS a brinksmanship going on, but it has to do with nationalities _ particular nationalities."
full story:
http://www.shns.com/shns/g_index2.cfm?action=detail&pk=DEBTLIMIT-03-10-06