US debt ceiling: Is there a global crisis brewing?
SummaryThere is a limit set to how much the US government can borrow to meet its legal obligations, which include paying interest on its debt and paying military salaries, tax refunds, and social security, etc. The debt ceiling is currently set at $31.381 trillion
On 1 May, treasury secretary Janet Yellen sent a letter to the US Congress saying that on 1 June the government is likely to run out of money. With the government currently breaching its debt ceiling, the situation has become parlous. Mint explains what’s happening: