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If lawmakers don't vote to increase the nation's borrowing limit by October 17, the U.S. government will default on its bills, resulting in the most serious crisis yet.

Republicans in Congress insist that they don't want a default, yet many members refuse to approve any new burrowing until Obama agrees to make certain policy concessions (say, for example changes to Obamacare).

President Obama has said that he would accept a short-term increase in the federal borrowing cap, rather than one lasting a year or more, according to a senior What House official. This is acknowledgement by the administration that it may not be possible to reach a deal on a long-term increase in the debt ceiling before the critical October 17 deadline.

Read more at the New York Times.

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