Why US lawmakers are arguing over the debt ceiling again
US lawmakers have just weeks to come to an agreement to lift the limit on federal borrowing or risk financial calamity if the government can no longer meet its obligations.
After a two-year suspension, the debt ceiling is back at the centre of a high-stakes political battle that is only set to intensify as the window for a deal begins to close.
Here is a guide to what is going on, why it matters and what it will take to avoid a US sovereign debt crisis.
What is the debt ceiling and why is it an issue again?
The debt ceiling sets a limit on the amount that the Treasury department can borrow to pay government commitments already approved by Congress.
Once the ceiling is reached, US lawmakers must either increase or suspend it to allow for the agency to issue new debt and raise the necessary cash to cover its bills — something they have done almost 100 times since the end of the second world war.
It was last suspended…
