US Debt crosses $14 trillion mark

The amount of U.S. debt subject to the country's legal maximum has topped $14 trillion for the first time.

That means the country is less than $300 billion away from the $14.294 trillion debt ceiling, which is a cap on how much the federal government can legally borrow. The Treasury Department estimates that borrowing could reach the cap sometime between March 31 and May 16.

If U.S. borrowing hits the ceiling and lawmakers fail to raise it, Treasury would be prohibited from borrowing more money. The country would be unable to pay its bondholders or fund programs and benefits in full. That's because there wouldn't be enough tax revenue coming in to cover all of the country's bills.

The effect would be crippling not only to the U.S. economy but very likely to economies and markets worldwide. At a minimum, a default could pummel U.S. bonds, the dollar and U.S. investors' portfolios.

Today, the United States spends roughly 76 cents of every federal tax dollar on just four things: Medicare, Medicaid, Social Security and interest on the $14 TRILLION DEBT. That leaves 24 cents of revenue to pay for everything else the federal government does. That's not a lot. But it's a mint compared to what could be left over by 2020, according to a simulation made by the Government Accountability Office.

Fail to curb the growth in the country's debt, by 2020 Washington could be spending 92 cents of every tax dollar on Medicare, Medicaid, Social Security and interest alone. That would leave just 8 cents to pay for everything else.