America's debt ceiling
At the time of writing the American government still seems to be deadlocked on increasing the amount of money it's borrowing. For the most part the stalemate is being led by one particular faction, which I'm not going to bother naming. They don't want it to rise and hand out a homely little analogy about how if America was a family no-one would think this was sensible - 'Gosh we're in debt, let's apply for another credit card'.
Firstly like so much that comes out of this groups collective mouths it's rubbish and shows that they have no connection to families who actually do this... because it makes sense. A lot of credit card companies promote zero interest on balance transfers for a set period. So rather than have to pay off the capital and interest on your original credit card you transfer it and pay only the capital - you've reduced your debt.
The second point is that it's still rubbish because even their analogy doesn't work - this isn't about buying stuff this is America's mortgage. America's next mortgage payment is due, but are they going to pay it.
Putting it like that should also help with all the financial Armageddon talk that's going around. What happens if a family misses a mortgage payment? It depends on the family. If they're just having a small problem the bank may let it slide this once, they'll get a mark on their credit rating which means any future borrowing will be at a higher interest rate; but by and large they'll survive. Unless the banks are complete bastards or the family are untrustworthy; in which case they get kicked out.
Is America untrustworthy; do the holders of their debt want to 'kick them out'. I don't think so. If America fails in this instance it'll mean higher interest rates on borrowing due to their adverse credit rating and higher interest rates on borrowings that are banked by American debt; which will affect other countries including the UK.
Of course the bad thing will be if they miss a payment, financial collapse doesn't occur and this faction use that to justify their actions - 'Hey we missed last months payment and nothing totally bad happened; we can miss this months too'.