Stop the borrowing - no deal by midnight?

Big Money

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The government may be about to lose borrowing authority.

But that doesn’t mean it will immediately be unable to pay its bills.

Government raises money by borrowing and by collecting taxes and other revenues.

Even after its borrowing authority is exhausted, it will continue to collect taxes.

Social Security must pay $12 billion in benefits on Oct. 23.

Treasury owes $6 billion in interest on the public debt on Oct. 31.

The government must pay out more than $55 billion on Nov. 1.

This may create a serious credibility problem for President Obama.