Investors brace for a painful crash into America’s debt ceiling
A solution will probably be found. But default is no longer unthinkable
Most of the time, the impossibility of America defaulting on its sovereign bonds is taken as a fundamental axiom of the financial system. The country issues the world’s reserve currency, so investors always stand ready to lend it money. And if you are able to borrow more, you can pay back your debts.
This article appeared in the Finance & economics section of the print edition under the headline “Bills, bills, bills”
Finance & economics May 13th 2023
- Your job is (probably) safe from artificial intelligence
- The meaty mystery at the heart of China’s economic growth
- India’s once-troubled banks are generating huge profits
- Are America’s regional banks over the worst of it?
- Investors brace for a painful crash into America’s debt ceiling
- A new world order seeks to prioritise security and climate change
From the May 13th 2023 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Finance & economics
An American purchase of Greenland could be the deal of the century
Donald Trump’s threat of force is wrong. Instead, he should name a price
China’s markets take a fresh beating
Authorities have responded by bossing around investors
Can America’s economy cope with mass deportations?
Production slowdowns, more imports and pricier housing could follow
Would an artificial-intelligence bubble be so bad?
A new book by Byrne Hobart and Tobias Huber argues there are advantages to financial mania
Will Elon Musk dominate President Trump’s economic policy?
He will face challenges from both America firsters and conservative mainstreamers
What investors expect from President Trump
Shareholders are over the moon; bondholders are readying the whip hand