In fact, its borrowing costs are near historic lows

In fact, its borrowing costs are near historic lows. And even the confrontation over the debt ceiling that looms a few months from now if we do somehow manage to avoid going over the fiscal cliff isn’t really about debt.

I can’t work out the bold sentence. Could someone please explain it to me?

Even if we don’t hit a financial crisis sooner, there is likely to be an argument over the ‘debt ceiling’ (the maximum able to be borrowed) in a few months time.
That confrontation will not actually be about debt in itself though.

In fact, its borrowing costs are near historic lows. And even the confrontation over the debt ceiling that looms a few months from now if we do somehow manage to avoid going over the fiscal cliff isn’t really about debt.

What is the verb of “confrontation”?

looms