The U.S. is currently engaged in heated negotiations about raising the debt ceiling, with political differences preventing the government from reaching a bipartisan decision.
With the debt ceiling serving as a fiscal control mechanism and a reflection of the country’s financial health, the eyes of the global market are all pointed to Capitol Hill.
The failure to increase the debt limit on time could trigger a government shutdown, a halt in public services, and even a default on government bonds. Given that U.S. Treasury securities are considered a safe haven asset, such a default could severely impact the global financial system.
However, understanding the intricacies of the ongoing debt ceiling crisis requires a historical lens. The genesis and evolution of the U.S. national debt, past instances of flirting with defaults, and the procedural complexities of raising the debt ceiling all play an essential role in the ongoing crisis.
In this report, CryptoSlate dives deep into this pressing issue, unpacking its history and examining its potential impact on the crypto market.
