The 2011 debt ceiling crisis was a political standoff between the U.S. Congress and President Barack Obama over raising the federal government’s debt ceiling. The debt ceiling is the legal limit on the amount of debt that the U.S. government can borrow. If the debt ceiling is not raised, the government would be unable to pay its bills, which could lead to a default on its obligations.
The 2011 debt ceiling crisis was a major political event that had a significant impact on the U.S. economy. The crisis began in early 2011, when the U.S. Treasury Department announced that the government would reach its debt ceiling in May of that year. Congress and the Obama administration began negotiations to raise the debt ceiling, but the negotiations were contentious and dragged on for several months.