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[[File:Spending increase of the Pelosi-Reid and Obama era.JPG|thumb|380px|'''''The unsustainable path of spending increases of the [[110th United States Congress|Pelosi-Reid]] and [[Obama]] era.''''' Source:Federal Reserve Board]]

[[File:Spending increase of the Pelosi-Reid and Obama era.JPG|thumb|380px|'''''The unsustainable path of spending increases of the [[110th United States Congress|Pelosi-Reid]] and [[Obama]] era.''''' Source:Federal Reserve Board]]

The '''Federal Debt Limit''', commonly known as the '''debt ceiling''' is the overall limit on federal government borrowing, as authorized by [[Congress]].  It is similar to an individual's credit card limit.

The '''Federal Debt Limit''', commonly known as the '''debt ceiling''', is the overall limit on federal government borrowing, as authorized by [[Congress]].  It is similar to an individual's credit card limit.

 

According to the Constitution, the Congress must approve all borrowings on behalf of the United States.  Before the 20th century, Congress approved all bond issuances separately and explicitly.  With the introduction of the debt ceiling, the treasury now had a line on which it could borrow as it needed to without having to go back to Congress for borrowings under the ceiling.

== Components of the Debt ==

== Components of the Debt ==

[[File:Federal Debt graphic PD WC.jpg|thumb|280px|Components of Federal Debt As Percentage of GDP FY1980-FY2007]]

[[File:Federal Debt graphic PD WC.jpg|thumb|280px|Components of Federal Debt As Percentage of GDP FY1980-FY2007]]

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, namely the debt held by the public, and intra-governmental debt. The former is defined as the 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>.  Intra-governmental 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 comprises roughly ²/₃ of the total Federal Debt.

== Obama debt ceiling crisis ==

== 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.

President [[Barack Obama]] voted against raising the debt ceiling in 2006.  However, he now wants to raise the debt ceiling to over twice what it stood at in 2006.  However, as Congress essentially deem the Obama administration to be a serious credit risk, Obama may not get the debt ceiling increased he wants.  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.

The last increase in the debt ceiling occurred in early 2010 and President Obama signed it into law on February 12, 2010. The limit stood at $14,294 billion. With large deficits emerging as [[baby boom]]ers retire, some members of Congress expressed concern over the government's dependence on borrowing to meet its obligations. President Obama responded by creating the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Deficit Reduction Commission), charged with identifying “policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.”<ref>Congressional Research Service, pp. 24-25 pdf.</ref> President Obama promptly ignored the Commission's recommendations.<ref>http://www.realclearpolitics.com/2011/06/23/cbo_quotwe_don039t_estimate_speechesquot_258038.html</ref>  

The last increase in the debt ceiling occurred in early 2010 and it was signed into law by President Obama on February 12, 2010, at which stage the limit stood at $14,294 billion. With large deficits emerging as [[baby boom]]ers retire, some members of Congress expressed concern over the government's dependence on borrowing to meet its obligations. President Obama responded by creating the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Deficit Reduction Commission), charged with identifying “policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.”<ref>Congressional Research Service, pp. 24-25 pdf.</ref> President Obama promptly ignored the Commission's recommendations.<ref>http://www.realclearpolitics.com/2011/06/23/cbo_quotwe_don039t_estimate_speechesquot_258038.html</ref>  

Obama's failure to take personal responsibility and instead his resorting to blaming others is a typical liberal victimhood mindset.

Obama's failure to take personal responsibility and instead his resorting to blaming others is a typical liberal victimhood mindset.