The United States has maxed out its credit card. Officially cracking through the nearly 14.3 Trillion dollar debt ceiling.
As Reality Check first told you last week, the Treasury is dipping into federal retiree funds to keep the government running. They claim now to have enough cash to pay the bills until early August.
Lawmakers say they are trying to find ways to cut spending.
"We're doing an across the board look at where we can cut wasteful spending because our deficit problem is very very real. whether the IMF fits into that would be premature for me at least to say. but obviously, just as before, every aspect of wasteful funding should be looked at." says Sen Chuck Schumer of New York.
Lets hope so.
The U.S. Made $413 Billion in interest payments last year. That means that in 2010 we spent more on interest on the debt than we spent on the Department of Health and Human Services, Department of Transportation, Department of Energy, Department of Veterans Affairs, HUD, Department of Justice, Department of Homeland Security, Department of Agriculture, Department of Commerce, Treasury Department, Department of Labor and the Small Business Administration, combined.
$413 Billion dollars with nothing to show for it.
"Washington has gotten away with kicking the can down the road on the debt and deficit without ever having to face the realities of the government's spending addiction." says Speaker of the House John Boehner.
That is an understatement
How fast are we adding to our national debt?
Under President George W. Bush we added an enormous $4.9 Trillion dollars to our national debt during his 8 years in office. In the first three years of President Barack Obama's first term, we had added just under another 4 trillion dollars.. which gets us to our current 14.3 trillion.
But this problem is not a Democrat or a Republican problem. It is an American problem.
"Both parties messed this up. this is not a Republican created problem or a Democrat created problem. It is both parties and we've got to face up to that if we're going to get this situation under control." says Representative Paul Ryan of Wisconsin.
Here's what you need to know.
By the year 2046 every single penny of tax revenue will be spent of interest payments alone to the national debt.