Senate leaders race to draft debt-limit bill after House effort collapses

First, Treasury Secretary Jack Lew made up this arbitrary deadline (he felt the children in the government needed some guidelines) and second, we have PLENTY of money coming into the government to pay ALL of our obligations (including Social Security) but a default (which would be the first time in U.S. history and would be an impeachable offense for the president) would only prevent the spend-mad politicians from borrowing more money.

...it was unclear whether an agreement between Senate Majority Leader Harry M. Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) could pass the Senate before the Treasury Department exhausts its borrowing power Thursday.