The United States government just hit its debt ceiling this Monday, May 16, according to the Wall Street Journal. This means we have hit the limit for how much we are legally allowed to borrow, even from within government branches. While there is certainly concern that the walls will come crumbling down, Treasury Secretary Timothy Geithner says he can have something worked out if we can have the deadline pushed back to August.
The scary thing is that nobody quite knows what will happen if we do go above that ceiling since it has never happened before. There aren’t set rules for which government programs get put on hold or cut off first. Financial failure could cause a global financial crisis, hurt the U.S. dollar and allow future investors to charge us a higher interest rate.
I hope you’ll read on for my roundup of my favorite personal finance blog posts from the past week. I’m kicking things off with one that really helps break down the debt ceiling situation in a way that’s easy to understand.