The document discusses the 2011 US debt ceiling crisis. It provides background on the debt ceiling and explains that failing to raise it would require massive spending cuts or default. The crisis occurred when the debt limit was reached in 2011. Republicans opposed tax increases while Democrats supported a mix of cuts and taxes. Eventually, a deal was reached involving spending limits but no tax increases. This damaged the US economy and credit rating. The global effects included weaker currencies in countries tied to the dollar and impacts on oil producers and China's holdings of US assets.