Uh oh

U.S. to Reach Debt Limit Monday

The United States will reach the limits of its borrowing Monday, but there won't be immediate financial impact until early August, when the Treasury says it can no longer stave off default. Nevertheless, the reaching of the debt limit will signal the beginning of a battle on Capitol Hill between Democrats who want it raised immediately and Republicans who want to get budget cuts in exchange for raising the limit. On CBS News, President Obama reiterated his stance that Republicans should not try to link the debt ceiling debate to other deficit-reducing projects, saying that doing so would jeopardize market confidence in the United States. “If investors around the world thought that the full faith and credit of the United States was not being backed up, if they thought that we might renege on our IOUs, it could unravel the entire financial system," Obama told a CBS News town-hall meeting. The consequences, he warned, would be worse than the 2008 recession.