The deadline is quickly approaching. By this time next week, the United States government will run out of money, unless Congress votes to raise the debt limit so that we can continue to borrow on credit. Everyone knows that America's debts are astronomical, so high that an entire class of Republicans were elected to Congress on the explicit promise to voters that they would cut spending and reduce government debt. Despite the automatic spending cuts known as sequestration, as well as numerous other slashes to federal programs across the board, America is still swimming in piles of debt.Should Congress fail to raise the debt limit, the Treasury Department will be forced to prioritize interest payments on their existing debts and put a freeze on a percentage of the American GDP in order to do so. So who are these people we owe money to? It boils down to three categories: foreign governments, corporations, and you, the American public.China, Japan, the OPEC countries, and Caribbean banking centers take up the bulk of our foreign debt, with the United States owing China a whopping $1.3 trillion alone. The government also owes money to federally funded programs such as military pensions, disability programs, and social security, which alone is owed $2.6 trillion. Lastly, the federal government is a debtor to the financial institutions that make this country run, like the Federal Reserve, which is owed $2.1 trillion. Banks and credit unions, mutual funds, and U.S. savings bonds also have lent money to the federal government. Not to mention of course all the state and local governments that lend to help the nation out.NPR put out the fabulous infographic below showing a more complete breakdown of the United States' debt.

Breakdown of America's $16.8 Trillion in Debt



So if the United States defaults of delays in raising the debt ceiling, what does this mean for its lenders? A myriad of things. Foreign governments that hold U.S. Treasury bonds may come to view their investments as less stable, and could start moving their portfolios in foreign holdings away from American currency. If this happens, the interest rates being paid by the U.S. government would rise.On the other hand, the Social Security Administration, which has been struggling with an ever shrinking amount of funds on hand, could reap some benefits by getting the higher interest rates that would come from an American default. However, the benefits to social security are not enough to make default an attractive option for the United States.