90
- Republicans and Democrats still haven’t reached an agreement on raising the US debt ceiling.
- The price of insurance against default on US government securities has risen significantly.
Time to raise the US debt ceiling is running out and the risk that the world‘s strongest economy will not have enough money to pay its creditors is growing.
The price of insurance against this happening next year has increased sevenfold in the last four months, the Chart of the Day shows. Currently, investors have more faith in Brazil and other emerging markets that they will not go bankrupt in the near future. With a five-year horizon, that