Raise the Roof: a Look at the U.S. Debt Ceiling. Debt Ceiling: US Hits $14.3 Trillion Limit. <br/><a href=" US News</a> | <a href=" Business News</a> Copy The United States today hit its $14.3 trillion congressionally-mandated borrowing limit and the federal government is running on fumes. While the treasury says it can continue funding Uncle Sam's $3.8 trillion annual spending spree by tapping into what is effectively an emergency credit card -- borrowing from government worker retirement funds and cutting off federally-backed state and local bond programs -- many people are wondering what, if any, impact not extending the debt limit might have as the May 16 deadline comes and goes. Members of ABC News' economic panel said Wall Street and our foreign creditors have bought into Treasury Secretary Tim Geithner's promise that "extraordinary measures" to keep the government funded will work and the ongoing budget talks between the White House and Congressional Republicans will be productive.
At this point, the market seems to believe that Washington is capable of reaching a deal. US debt ceiling: Why is America facing a borrowing crisis? America is on the brink of a potential default, threatening military salaries and social security payments.
How did the world's largest economy get here? Why is America facing a debt crisis? In short, because it is not allowed to borrow any more money. The US national debt cannot legally exceed a debt ceiling of $14.29 trillion (£8.86tn) – a seemingly huge amount, but one which was reached in May. So what happens next? Market Perspective: Dealing with Debt.