Indeed, thus far bond investors have shown little discomfort about the prospect of vast additional federal borrowing.

First, federal borrowing can be large enough to affect current interest rates, which in turn may influence private saving and investment.

Congress also usually votes on increasing the debt limit after fiscal policy decisions affecting federal borrowing have begun to take effect.

White House officials and Congressional leaders knew for at least two months that federal borrowing would soon exceed the legal limit.

Record federal borrowing and spending is hampering America's economic turnaround, making it harder for small businesses to get the credit they need to create jobs.

Central to low interest rates - particularly long-term rates - is keeping down federal borrowing.

Asked about federal borrowing, he said: "It's not a good story.

Increased federal borrowing has offset, but only partially, deleveraging in the private sector.

After all, battles over federal borrowing and spending go back to George Washington.

Both the stimulus and the bailouts, which I opposed, have required unprecedented amounts of federal borrowing.