January 31, 2023 — The US federal debt hit its legal limit, $31.4 trillion, on Thursday, January 19, 2023. Everyone feels that they have seen this movie before: there is no need for alarm because the politicians will strike a deal at the last moment. But this time, the movie could well end tragically, as a result of the intransigence of Republicans in Congress. It is likely that they will refuse to raise the debt ceiling until after they have driven the car over the cliff. This could mean a once unthinkable default by the US government. Unfortunately, letting them do that may be the best strategy available to President Joe Biden when the time comes.