[Ikrleprl]

Thought this was interesting ... an article from Oct. 15, 2004, in the Washington Post:

The federal government reached its $7.4 trillion debt ceiling yesterday, forcing Treasury Secretary John W. Snow to delay contributing to one of the federal employees' pension systems to avoid running out of cash and possibly defaulting on government debt. ... Snow has pleaded with Congress since Aug. 2 to raise the debt limit, but Senate Republican leaders -- whose aides said they were worried about the possible political backlash -- adjourned for the campaign this week without acting on Snow's request. And some history...

The federal government regularly sells Treasury bonds to finance the difference between the amount of money it collects in taxes each year and the amount it spends. The debt ceiling was first imposed in 1917 to act as a brake on the total amount of accumulated debt the government owes. Today the total debt includes money owed either to private investors or, in the case of funds borrowed from surplus Social Security taxes, to other government programs.

Since then, the Treasury has on five occasions delayed pension fund payments as it approached its limit on borrowing. Three of those incidents came under President Bush -- in 2002, 2003 and yesterday -- as Republicans in Congress have become leery of voting to raise the debt limit. The others were during the rapidly spiraling deficits of 1985 and the budget showdown between the new Republican Congress and President Bill Clinton in 1995.

When Bush came to office, the debt ceiling was $5.95 trillion and had last been raised in 1997.