The August deadline for lifting the debt ceiling is looming. Will the US government default on its loans? Has that ever happened before? Yes it has -in 1979.In the spring of 1979, Congress was in the midst of a similarly heated debate about raising the debt ceiling, Legislators eventually reached a last-minute deal to raise the debt ceiling and (they thought) save the day, but something went wrong. The Treasury didn’t redeem $120 million worth of securities that matured in April and May.Here’s the short answer: When all else fails, blame the computers.
In other words, the U.S. Treasury defaulted on its securities even though Congress settled the debt-ceiling issue. What happened? It’s not totally clear.
And as a result we got ronny raygun and the entire world went to shit.
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