The US has been in debt and arguing about it for its entire existence.
The only two years in US history when there was no debt came as then-President Andrew Jackson was blowing up the banking system and immediately preceded the Panic of 1837 and a major depression.
In recent decades, disagreements over raising the debt ceiling (the maximum amount of money the Treasury is authorized to borrow to pay its bills) have grown along with the size of the national debt. The country reached its debt limit, which currently stands at $31.4 trillion, on Thursday.
 |
| Secretary of the Treasury Janet Yellen's signature is shown on a newly printed sheet of bills on Dec. 8, 2022. (AP) |
On Jan. 19, the United States officially hit its legal debt limit of almost $31.4 trillion. Over the next few months, the Treasury Department will be able to shift money around to buy time, but sooner or later, unless the limit is raised or suspended, the country risks defaulting on its debts.
With members of the new House Republican majority saying they want spending cuts included in any bill that raises the debt limit — and with the White House saying it will not negotiate — the door is open to an unprecedented U.S. default.
