America is facing an unprecedented fiscal and economic threat next year and Congress has until Jan. 3 to avoid it. Sometime in 2023, probably around June, the United States will hit the debt ceiling, which is the maximum amount the government can borrow.
Failure to raise the ceiling in time would be a disastrous shock to the nation and a world economy reeling from inflation, a looming recession and the impact of the Ukraine war. Interest rates would skyrocket, the government could not pay its bills and timely benefits to millions of Americans on Social Security and Medicare would be in jeopardy.
The debt limit, which is a statutory cap passed by Congress, now stands at $31.4 trillion. Once that level is reached, the government will be forced to choose which bills to pay and which to reject
