US national debt time bomb is ticking again, and a last-minute deal doesn’t seem likely

THE National Debt Clock in New York City – a running display that shows the US national gross debt and each US family’s share of it – is starting to seem like a ticking time bomb.

Once again, legislators in Washington are holding the global economy to ransom in a debate over US government spending, and this time there may be no eleventh-hour compromise in store.

Volatility is almost certain to rise as Republicans try to keep a lid on spending, while Democrats push for an unconditional commitment to debt obligations and budget plans. Unless a middle ground can be found, the US could be forced to default on its debt this summer – which would be a disaster for markets.