Debt Ceiling D-Day: U.S. to Hit $14.3 Trillion

The United States will hit its $14.3 trillion congressionally-mandated borrowing limit May 16, 2011, and the federal government will be running on fumes. (Dan Arnall/ABC News; SOURCE: Financial Management Service, Treasury; ABC News estimates)

First thing this week, the United States will have hit its $14.3 trillion congressionally-mandated borrowing limit and the federal government will be running on fumes.
While the treasury says it can continue funding Uncle Sam's $3.8 trillion annual spending spree by tapping into what is effectively an emergency credit card -- borrowing from government worker retirement funds and cutting off federally-backed state and local bond programs -- many people are wondering what, if any, impact not extending the debt limit might have as the May 16 deadline comes and goes.
Members of ABC News' economic panel said Wall Street and our foreign creditors have bought into Treasury Secretary Tim Geithner's promise that "extraordinary measures" to keep the government funded will work and the ongoing budget talks between the White House and Congressional Republicans will be productive.
Panelists said there likely will be few economic effects seen next week, with much more dire predictions offered up should a deal on the debt limit and budget not be completed in the next few months.
"Treasury has a lot of wiggle room in terms of shuffling money and delaying payments," said Dean Baker, co-director of the Center for Economic and Policy Research. "At some point it will run out, but I don't doubt that they can get at least until August and quite possibly much later."


 Source;abc news