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The senate is debating the possible increase of our national debt ceiling from the current cap of 8.2 trillion to 9 trillion. This is critical because if the limit is not raised, the government will shutdown due to lack of borrowing power, just like in 1996. The national debt had rose from $5.6 Trillion when president Bush started in 2000, it is now at $8.2 Trillion, the current limit, and going up. The Republican contention is to view this number ($9 T) not as a value, but as a percentage of the current economy, which should be justifiable, right? Wrong. The current debt is 67.5% of the gross domestic product, which is 15.5% greater than any time in the previous century.

But what does it mean to us as citizens and consumers (two roles we play quite awfully)? We for one, we do not want to have a whole of debt and not be able to pay, just like that maxed out CapitalOne card. Two, trade with countries like China & Japan depend heavily on how much we can borrow, if China or Japan wants to cash out (for the simple reason that the US economy seem slipping due to increasing debt), we will not have enough money to pay off, hence raising taxes, and that means you get hit with a big bill for the government spending money to rebuild Iraq!
 
This poses a catch 22 situation, they should raise the debt limit to continue function, but at the same time rise loosing it all and taxing the hell out of its citizens. In such situation the government has always sided, you got it, against it citizens, more than likely the debt limit will be raised.