The debt ceiling bill passed the House by a vote of 269-161 and the Senate with bipartisan support by a vote of 74-26. The legislation was quickly signed into law by President Obama Tuesday, averting a U.S. default and government shutdown.
While the debt ceiling eliminates the immediate threat of a crisis, the U.S. is still in deep financial crisis even if the House, the Senate, and the President agreed to increase the government’s borrowing limit. An important fact is that the U.S. will have to continue borrowing money to pay off what they have already borrowed.
Check out the weeks of intense and heated debate over the debt crisis in pictures:
Admiral Mike Mullen, chairman of the U.S. military's Joint Chiefs of Staff, speaks during a news conference at the International Security Assistance Force (ISAF) in Kabul July 31, 2011. It is unclear if the United States will be able to pay troops on time in the event of a debt default, Mullen told troops in Afghanistan on Saturday.ReutersCongressional leaders scrambled for enough support from skeptical lawmakers to push through an 11th-hour deal to raise the U.S. borrowing limit and avert a potentially devastating debt default. ReutersU.S. House Majority Leader Nancy Pelosi (D-CA) (C) talks to reporters after a Democratic caucus meeting about debt relief legislation with U.S. Vice President Joe Biden at the U.S. Capitol in Washington August 1, 2011. A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday. ReutersU.S. Representative Steny Hoyer (D-MD) (2nd L) talks to reporters after a Democratic caucus meeting about debt relief legislation with U.S. Vice President Joe Biden at the U.S. Capitol in Washington August 1, 2011. Also pictured is Rep. Jim Moran (D-VA) (L). A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday. ReutersU.S. Director of the Office of Management and Budget Jacob Lew (L) departs after a Democratic House caucus meeting about debt relief legislation with U.S. Vice President Joe Biden (not pictured) at the U.S. Capitol in Washington August 1, 2011. A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday.ReutersU.S. Representative Elijah Cummings (D-MD) reads a note he received from a concerned constituent as he talks to reporters after a Democratic caucus meeting about debt relief legislation with U.S. Vice President Joe Biden at the U.S. Capitol in Washington, August 1, 2011. A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday. ReutersU.S. Representative Peter DeFazio (D-OR) throws up his hands as he talks to reporters after a Democratic caucus meeting about debt relief legislation with U.S. Vice President Joe Biden at the U.S. Capitol in Washington August 1, 2011. A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday. ReutersA trader works on the floor of the New York Stock Exchange.ReutersU.S. Representative Peter DeFazio (D-OR) holds his notes as he talks to reporters after a Democratic caucus meeting about debt relief legislation with U.S. Vice President Joe Biden at the U.S. Capitol in Washington August 1, 2011. A bill that raises the U.S. debt limit by $2.1 trillion and cuts budget deficits by a similar amount over the next decade was on the verge of clearing an important procedural hurdle in the House of Representatives on Monday. ReutersU.S. Vice President Joe Biden puts up his hands as he speaks to reporters after meeting with House Democrats about debt relief legislation at the U.S. Capitol in Washington August 1, 2011. Congressional leaders scrambled for enough support from skeptical lawmakers on Monday to push through an 11th-hour deal to raise the U.S. borrowing limit and avert a potentially devastating debt defaultReutersU.S. House Speaker John Boehner (R-OH) returns to his office after the vote on debt relief legislation at the U.S. Capitol in Washington, August 1, 2011. The U.S. House of Representatives on Monday passed a measure to increase the country's debt ceiling by a vote of 269 to 161 and sent it to the Senate for final congressional approval. ReutersU.S. House Majority Leader Eric Cantor (R-VA) (C) talks to reporters as he walks from the House chamber after voting on debt ceiling legislation at the U.S. Capitol in Washington, August 1, 2011. ReutersU.S. President Barack Obama stands at the lectern to deliver remarks on the debt ceiling crisis in the briefing room at the White House in Washington July 31, 2011. Obama said on Sunday that Democrat and Republican leaders have reached an agreement to reduce the U.S. deficit and avoid default, but it was not clear if the spending cuts were deep enough to stave off a credit rating downgrade. ReutersTraders work on the floor of the New York Stock Exchange, August 1, 2011. Stocks turned negative after a strong opening on Monday as relief over a last-ditch debt deal in Washington faded after a weak reading on the manufacturing sector. ReutersIn July, President Barack Obama was back at it again for fears of a government shutdown, demanding budget negotiators find common ground to prevent the looming shutdown. A decision had to be made before the Aug. 2 cutoff date or the U.S. government would have gone into default. The U.S. had hit its $14.3 trillion debt ceiling in May and needed it to be raised by $2.4 trillion so that it could last to the end of 2012.ReutersFinancial Crisis: U.S. Debt Ceiling in PicturesReuters
