EXPLAINER: How ominous is the debt limit problem?

WASHINGTON (AP) — On the brink of hitting the nation's legal borrowing limit on Thursday, the government is resorting to “extraordinary measures” to avoid a default.

Sounds ominous, right?

But -- take a breath -- the phrase technically refers to a bunch of accounting workarounds. Yes, accounting.

Because the debt cap limits the issuance of government bonds — a way the U.S. borrows money — these workarounds shift money among accounts and should keep the government open through at least June, according to a letter last week by Treasury Secretary Janet Yellen.

In theory, President Joe Biden and Congress are supposed to use that additional time to work out an agreement to raise the nation's legal $31.38 trillion debt ceiling. These talks often grow heated and go down to the wire, with major economic damage in the balance. But there have been roughly 80 deals to raise or suspend the borrowing cap since the 1960s.

What could be worrisome is not the existence of extraordinary measures, but what happens if they are exhausted this summer without a deal in place. Economists have warned that could lead to a global financial crisis.

So far, House Speaker Kevin McCarthy and Biden are playing what could be a dangerous game of chicken with the world’s largest economy in the middle.

Some questions and answers on the situation:

WHAT ARE “EXTRAORDINARY MEASURES”?

Yellen’s Friday letter listed two measures that will begin this month in order to prevent the government from defaulting.

First, the government will temporarily suspend payments to the retirement, disability and health benefit funds for federal employees. Second, it will suspend the reinvestment of maturing government bonds in the retirement savings accounts of government...