Nigeria Content Online

Could the United States government run out of money, stop paying its creditors worldwide, and just shut down?

“The strength of
the American dollar as a world currency is grounded on the
unconditional guarantee by the United States to pay its debts,” said
Democratic Senator, Dick Durbin.

“A default on that
commitment, a near default, a threat of default, no matter how short,
would be a first in the history of the United States,” he added.

From Tokyo to
Toronto, governments of all sizes are facing tough budget choices. The
U.S. is no exception and this week, President Obama proposed a
multi-trillion-dollar budget that lawmakers will probably fight over
for months.

The problem is
that Washington faces a bigger budget decision much sooner. Like many
other countries, the U.S. spends more than it collects as taxes and it
makes up the difference by borrowing.

But unlike their
counterparts in most other countries, U.S. lawmakers keep a legal limit
on total debt. Right now, it’s roughly $14.3 trillion and Washington
will probably need more money within weeks.

Some Republicans say they’ll vote against raising the limit because they are so determined to cut government spending.

“I think the most
irresponsible thing that we can do as a Congress, the least grown-up
thing we can do, is just to vote to raise that debt ceiling and
continue business as usual, amounting these massive deficits and debt
that we have been running up,” said Republican Senator, Pat Toomey.

The impact could
be enormous, leaving the U.S. treasury without money for paychecks,
pensions or payments to other governments worldwide; it could undermine
faith in the most important currency in the world.

As that enormous
decision approaches, some prominent Republicans are backing away from
the threat and looking for ways to negotiate a new, higher limit.

In fact, President
Obama’s Democrats are more likely to mention the debt limit these days,
losing no opportunity to remind voters about what Republicans have been
considering.

Some Republicans
may still be considering it. Until we get close to a vote on the limit
in the new Republican-controlled House of Representatives, we can’t be
sure. Washington could still really shut itself down. Or come close.

Jonathan Mann presents Political Mann on CNN International each
Friday at 18:30 (CAT), Saturday at 3pm and 9pm (CAT), and Sunday at
10am (CAT).