U.S. Debt Ceiling: Handy Chart Explains It All

Congress, the White House and various political onlookers have been debating the seriousness of the U.S. debt ceiling and outlining different scenarios about what could happen if it isn't raised by August 2.

To help explain the debt ceiling and the consequences of not raising it, Mint.com and Column Five Media present a visually-striking chart, designed by Ross Crooks. The chart is a lot to take in (you can see it in all its glory here.) With that in mind, here's a breakdown of its contents.

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Explaining The U.S. Debt Ceiling

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Comments

[causeimthesquid]

11:20 AM on 07/23/2011

Not raising the debt ceiling will not result in default. It is just a fear-mongering tactic to gain public support. The federal government collects more than enough money each month to service the debt. If the US government needs to borrow to pay medicare and social security benefits, then this is an admission that the programs are already insolvent.

If the US government refuses to cut any spending, there are still other ways to generate revenue. For instance, there are plenty of assets they could sell. Or instead of leasing land for mining, the land could be sold outright.

Default will occur, it is just a matter of when. Raising the debt ceiling only pushes the problem off into the future. In fact, technically the US is already defaulting. By some economists measures, inflation is around 9%. This is how rich countries default, by paying debts with printed money and debasing the currency.

[tdpubs]

06:23 PM on 06/14/2011

This talk of debt is ridiculous. We are in a recession. You argue about debt and spending when you have revenues under control. The idea that you are going to cut the budget without further crippling the economy is idiotic. Perhaps they want to cripple the economy in order to bring down the president.

[Deon Lewis Duke]

09:38 AM on 05/27/2011

Let's start by cutting all Government Elected officials, policy, and decision makers salaries down to a reasonable $50,000 a year. Cut the military spending by 1 3rd. If everyone's a One Man Army why do we need so many of them. Start demanding people who owe us money start on repayment or trade and barter plans. Legalize the billion dollar marijuana industry. That's all you're getting, come find me for more. #deonlewisduke #2016

[Nightangle]

09:08 AM on 05/27/2011

Another reason why I am leaning towards a conservative and a real reformist president. Millennials like me, and the future generations will ultimately pay for the spend spend generations of the past.

[tdpubs]

06:20 PM on 06/14/2011

There has never been a Republican president who has balanced the federal budget unless you include Bill Clinton. He was the best Republican president since Eisenhower.

[causeimthesquid]

11:23 AM on 07/23/2011

The Clinton balanced budgets are a myth. For starters, the budget gaps that were narrowed were a result of a bubble-economy, the dotcom bubble resulted in higher revenues than would have been collected under healthy economic conditions.

But, more importantly, the national debt increased every year under the Clinton administration. Sure, putting some spending off-budget is one way to make the budget look balanced, but appearance and reality are two different things.

[jimhetrick1]

08:30 AM on 05/27/2011

If the people that run are country can't do a budget and can just keep rasing the debt limit. Then the american people should be able two do the same there is no way they are going to get the national debt under control because they don't get it.

[GuyCybershy]

04:47 PM on 05/26/2011

Ron Paul discusses the debt and raising the debt ceiling

http://www.youtube.com/watch?v=wz0vvmMftWA

[new beginning]

12:22 PM on 06/17/2011

Thanks for posting this.

He makes so much sense. The only year that we need to look at is the current year. Projections of cuts in future years are meaningless.