Even without additional borrowing authority, the government would continue to receive tax revenue, but hardly enough to keep up with the bills.

Sen. Patrick Toomey, R-Pa., says he will introduce legislation next week that would require the government to pay interest on the debt as well as Social Security benefits and wages for active duty members of the military if the borrowing limit is not raised.

"Because the people who want to keep spending as usual and don't want to negotiate some spending reductions are out there propagating this myth that somehow failure to raise the debt ceiling would result in a default, I felt like it's necessary to demonstrate and, in fact I prefer to codify, the alternative," Toomey said in an interview.

Congressional Democrats have recently urged the president to lift the debt limit unilaterally. He said â¿¿ as he has before â¿¿ that he won't do it, that Congress has voted for the spending that resulted in federal borrowing, and should now agree to pay the bill.

"There are no magic tricks here," Obama said Monday. "There are no loopholes. There are no, you know, easy outs."

Obama noted that combined with other legislation he signed earlier in his term, he and Congress have reduced deficits by about $2.5 trillion over a decade, short of the $4 trillion he said is necessary to get them down to a manageable size.

He insisted that in negotiating deficit reductions, both spending limits and tax revenue increases need to be on the table. Aides have said that closing loopholes and placing limits on deductions could generate about $600 billion in new revenue. He added that he is "open to making modest adjustments to programs like Medicare to protect them for future generations."

One option for Boehner is to package a debt limit increase together with a full catalog of spending cuts and try to pass it through the House. That could prove enormously challenging since he would have to accomplish the feat exclusively with GOP votes â¿¿ and some conservative hard-liners simply refuse to approve any debt increase.

If you liked this article you might like

What's Behind the Surge in Energy Stocks

Hillary Clinton Says Prosecuting Individuals is Key to Wall Street Reform