WASHINGTON — The United States just passed a dubious milestone: Government debt surged to an all-time high, topping $14 trillion — $45,300 for each person in the country.
That means Congress soon will have to lift the legal debt limit to give the nearly maxed-out government an even higher credit limit or dramatically cut spending to stay within the current cap.
Either way, a fight is ahead on Capitol Hill, inflamed by the passions of tea-party activists and deficit hawks.
Already, both sides are blaming each other for an economic train wreck.
Bills increasing the debt limit are among the most unpopular to come before Congress, serving as pawns for decades in high-stakes bargaining games.
Treasury Secretary Timothy Geithner says failure to increase borrowing authority would be “a catastrophe.”