US debt ceiling: How did we get to this point?

Risk of default in June

“We will have an economic and financial catastrophe.” These are the words of US Treasury Secretary Janet Yellen on the US debt situation.

She recalled how it is the explicit task of Congress to ensure this does not happen by raising the debt ceiling, to provide longer-term certainty and ensure the US government is able to make payments. Yellen's remarks were clearly designed to draw attention to the gravity of the situation and urge lawmakers to act responsibly in their decision making when deciding on any potential debt ceiling and its deadline. Bank of America ups year-end target for S&P 500 The debt ceiling is essentially a public finance control tool created in 1917. Before then, every debt issuance had to be pas...