The US has hit its debt ceiling of $31.4 trillion. If Congress refuses to raise it, the federal government could come to a standstill as soon as next month. Donald Trump has made light of the consequences of default and urged Republicans to let it happen unless Democrats accept sweeping spending cuts. Jamie Dimon, self-styled saviour of America’s banks, says such a move could spark panic in the markets. He’s been assembling a weekly “war room” at JPMorgan to assess the risks of a default. A reminder: this is a uniquely American problem. Most countries that opt for debt limits tend to structure them as a percentage of GDP, rather than a nominal value that politicians can bicker over.
