Here's a great explanation of the problem that even a knuckle dragging redneck like me pretty easily understood:

Food for thought..... This puts it into a much better perspective and is the
same for many countries in Europe ...

Why the U.S. was downgraded:

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385

Got It ?????

OK now Lesson # 2:
Here's another way to look at the Debt Ceiling:

Let's say, You come home from work and find there has been a sewer backup in
your neighborhood....and your home has sewage all the way up to your
ceilings.

What do you think you should do ......

Raise the ceilings, or pump out the excrement?

Your choice is coming Nov. 2012