The treasury is at the legal limit for borrowing, in order to run the country and if congress doesn't make a deal there could be another government shut down. Lew is using "accounting tricks" in order to extend the deadline but if this is not taken care of soon the then, of course according to the media, the whole market will meltdown and everyone is going to freak out and the world will come close to the end. The government is hoping they do not come close to a default and everything can stay happy and safe. Both sides both do not want another government shut down, but a deal will most likely have to be made. There does not necessarily need to be an increase, but most likely there will be a suspension of the debt ceiling like what has happen in the past.
http://money.cnn.com/2014/02/07/news/economy/debt-ceiling-reached/index.html?iid=SF_E_Lead
It is true that the government either needs to raise the debt ceiling very soon or there will be a shutdown. The article discusses that the amount on hand will depend on the about of tax refunds that the government gives out. In theory there will be a lot of refund given out because people who know that they will be receiving a refund, will be filing for a return the earliest and those who owe will wait to file until the latest point possible. This will sway the influxes and outflows of the currencies so that the government will be short on funds. In addition the amount that they social security is growing immense as time continues because it is a pay go system in which the inflows from people are used to pay for the users of social security now, this will be a large problem here in the next few years as even more baby boomers start to retire. We drastically need social security reform!!!!
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