When Washington raised the debt ceiling this week, the Beltway media breathlessly reported that the fiscal crisis had ended. Lawyers danced in hallways, bureaucrats twerked on the Metro, congressional aides kissed strangers in the streets — the Tea Party has been defeated! It was like VJ day for wonks.

Default won't happen. This chart shows why the U.S. Government will not default on its debt, should it hit the statutory debt limit set by Congress (a limit that the Treasury Deparment suggests may be reached later this month).

There are a lot of myths about the looming government shutdown. The biggest one is that it is, in fact, a government shutdown. The country will not descend into anarchy, there will not be chaos in the streets (well, no more than usual) and, really, we don’t need to panic if it happens. Here’s the deal. 

Governor Rick Perry (R-TX) linked to this instructional video produced by Texas State Rep.Lois Kolkhorst, the Republican chairwoman of the House Public Health Committee. In the video, Kolkhorst says Texas will benefit from exchange subsidies even though Texas has not created an Obamacare exchange.

On February 5, the Congressional Budget Office released a report titled, "Macroeconomic Effects of Alternative Budgetary Paths". Full disclosure: even to us policy wonks, this report sounds a bit dry. Not exactly 50 Shades of Grey, if you know what I mean. But this report did contain some very interesting nuggets. Prepared at the request of the Chair of the Senate Budget Committee, Patty Murray, I'm certain that it came as a bit of a surprise.

Update on the Debt Ceiling fight: House Republicans appear to be listening to the grassroots. Today GOP leaders announced they will not pass any bill to extend the national debt ceiling until the Senate does its job and passes a budget.

The repeated refrain from the likes of Paul Krugman and Jay Carney is that we MUST increase the debt limit so that we don't default on the full faith and credit of the United States, and that we continue to pay our bills. Indeed, on Monday, President Obama chastised Congressional Republicans for making spending cuts mandatory in any debt ceiling negotiation: