Video: United States of America: Debt Limit Explained
The United States House of Representatives votes to suspend debt limit until May 2013
By Lori Montgomery and Rosalind S. Helderman
The Washington Post
A plan to suspend the federal debt limit cleared a key hurdle in the House on Wednesday, January 23, 2013 easing the threat of a government default for at least 4 months.
But congressional leaders were already looking toward the next crisis: deep automatic spending cuts that look increasingly likely to hit the Pentagon and other federal agencies on March 1, 2013. Leaders in both parties predicted Wednesday that the cuts, known as sequestration, will take effect at least briefly while policymakers try to restart talks over a far-reaching plan to lower the national debt.
“It’s going to happen,” said Sen. Richard J. Durbin (Ill.), the No. 2 Democrat in the Senate, noting that Republicans in…
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