Changes

There are two components to the Federal Debt, the debt held by the public, and intragovernmental debt. The debt held by the public is debt held by any individual or entity that is not the federal government such as a mutual fund, individual investor, foreign government, or a municipal government <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>.  Intragovernmental debt is debt the government owes itself such as the Social Security Trust Funds, the Medicare Hospital Insurance Trust  Fund, and the Civil Service Retirement and Disability Fund <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>.  Currently Debt held by the public is roughly 2/3 of the total Federal Debt.

There are two components to the Federal Debt, the debt held by the public, and intragovernmental debt. The debt held by the public is debt held by any individual or entity that is not the federal government such as a mutual fund, individual investor, foreign government, or a municipal government <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>.  Intragovernmental debt is debt the government owes itself such as the Social Security Trust Funds, the Medicare Hospital Insurance Trust  Fund, and the Civil Service Retirement and Disability Fund <ref>http://www.concordcoalition.org/issue-briefs/2011/0708/understanding-federal-debt-limit</ref>.  Currently Debt held by the public is roughly 2/3 of the total Federal Debt.

== Debt Ceiling 2011 Controversy ==

== Obama debt ceiling crisis ==

[[Barack Obama]] voted against raising the debt ceiling in 2006.  Now, he wants to raise the debt ceiling to over twice what it was raised to in 2006.  However, Obama may not get the debt ceiling increased by Congress who essentially deem the Obama administration to be a serious credit risk.  This is similar to a credit card company telling a person with either no income or little income who has maxed out on his credit card that he won't get a line increase and must pay off his card lest he be sued.  In fact, it is almost unheard of for a credit card company to give a credit line increase to someone who's maxed out on his credit card.

[[Barack Obama]] voted against raising the debt ceiling in 2006.  Now, he wants to raise the debt ceiling to over twice what it was raised to in 2006.  However, Obama may not get the debt ceiling increased by Congress who essentially deem the Obama administration to be a serious credit risk.  This is similar to a credit card company telling a person with either no income or little income who has maxed out on his credit card that he won't get a line increase and must pay off his card lest he be sued.  In fact, it is almost unheard of for a credit card company to give a credit line increase to someone who's maxed out on his credit card.

=== Background to Obama debt crisis ===

=== Background to Obama debt crisis ===

After the failure of President Obama's [[Stimulus package]], his entire [[White House]] economic team quit. Over the next several years, the deficit was projected to fall somewhat, but if discretionary spending were to stay at the same level, the deficit would not fall enough under President Obama's economic policies to stabilize debt payments. Further, the debt is projected to begin rising more rapidly under Obama's policy because of the rising costs of [[Social Security]], [[Medicare]], and [[Medicaid]].

After the failure of President Obama's [[Recovery Summer|Stimulus package]], his entire [[White House]] economic team quit. Over the next several years, the deficit was projected to fall somewhat, but if discretionary spending were to stay at the same level, the deficit would not fall enough under President Obama's economic policies to stabilize debt payments. Further, the debt is projected to begin rising more rapidly under Obama's policy because of the rising costs of [[Social Security]], [[Medicare]], and [[Medicaid]].

== History of the "Debt Limit" ==

== History of the "Debt Limit" ==