Click here for a great article on the Debt Ceiling. Here's a bit of it:
There is currently a fierce debate underway in the United States over the country's "debt ceiling". You may be scratching your head as to what exactly a "debt ceiling" is, and why politicians are so up in arms over it.
The debt ceiling is simply a cap on how much money the US federal government can owe. For instance, if the debt ceiling was set at $10 trillion, then the US government would be forbidden from incurring a total public debt load of over $10 trillion. This $10 trillion number includes both public debt (money that is owed to individual investors, foreign governments, pension funds, etc) and intragovernmental holdings (money that is owed to various government programs).
The debt ceiling is simply a cap on how much money the US federal government can owe. For instance, if the debt ceiling was set at $10 trillion, then the US government would be forbidden from incurring a total public debt load of over $10 trillion. This $10 trillion number includes both public debt (money that is owed to individual investors, foreign governments, pension funds, etc) and intragovernmental holdings (money that is owed to various government programs). We found a nice 5 min. video on the debt ceiling. Worth a watch:
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