5 Things You Need to Know About the Debt Ceiling

News sites from The Huffington Post to BBC are reporting on the debt ceiling decision Washington politicians will have to make next week.

But what is the debt ceiling and how will it affect University City residents? We've rounded up a few resources to help you understand what the politicians are so anxious about.

• Slate.com gave readers the basics back in Januaryexplaining that the debt ceiling "works like this: Congress controls the annual surplus or deficit by determining the country's levels of taxation and spending." The article explains the role of the deficit and the Treasury Department, concluding: "The ceiling acts as a check on that overall debt: When Treasury needs to issue debt above the ceiling, Congress raises the ceiling."
• Reuters spoke with 13 company CEOs about their take on the debt ceiling. Some favored Speaker of the House John Boehner's plan, while others gave general support to a elected leaders coming to an agreement.
• CNN Money reported in May that Treasury Secretary Tim Geithner suspended investment in Federal retierment funds until Aug. 2.
• U.S. News and World Report reported that advisers for large mutual funds and 401Ks are telling investors not to panic. The article says the firm Fidelity cautions investors to "investors must not let the uncertainty of short term events cause them to make rash portfolio decisions."
• U.S. News and World Report has a slide show of the six consequences of not raising the debt ceiling. Those consequences include slashing government services and market panic.

Bonus item: University City Patch on how the debt ceiling debacle could affect residents of St. Louis County.