Dollar was the most sought after currency in the world.
The long term credit rating of USA was AAA.
What is the debt ceiling ?
When there is a budget deficit , the only way that the shortfall can be paid off is by issuing of debt instruments. Under the federal law of US, the amount that the govt. can borrow is limited by the debt ceiling, which can only be increased with a vote by congress.
Congress instituted the concept of “debt ceiling”in 1917in order to provide more flexibility to finance the US involvement in World War I, Since then, the Treasury may borrow any amount needed as long as it keeps the total at or below the authorized ceiling. The congress must enact specific legislation and the President must sign it into law.
The US has had public debt since its inception. Debts incurred during the American Revolutionary War.
Every president since Harry Truman has added to the national debt.
The debt ceiling has been raised 74 times since March 1962
The immediate crisis ended on July 31, 2011, when a complex deal was reached that raised the debt ceiling and reduced future government spending. However, similar debates are anticipated for the 2012 and 2013 budget.
After the legislation was passed by both the House and Senate, President Barack Obama signed the Budget Control Act of 2011 into law on August 2, the day of the deadline .