Financial encyclopedia

The U.S. government cannot make ends meet.
Borrow money by issuing bonds, etc.
Statistics As of October 2022,
US debt has accumulated to $31 trillion.
At present, the ceiling of US debt issuance is $31.4 trillion.
Us treasury secretary yellen estimates the "limit" of debt default
The earliest will be in early June 2023.

Once the US debt defaults,
A large number of US debt in the hands of multinational banks and central banks will be reduced or even sold, triggering global financial panic.
It will also cause a chain reaction,
The credit rating agencies will downgrade the U.S. government bonds,
The borrowing costs of the government, enterprises and people have risen.
Yellen also warned that the debt will be used against the dollar.
The role of global reserve currency has caused "negative impact"

Once the US debt default is not resolved within 3 months,
The problem will evolve into a long-term problem, which will plunge the American economy and trigger a general depression.
"doomsday scene"
The White House Council of Economic Advisers also pointed out
By then, 8.3 million people will be unemployed,
The stock market will plummet by 45%.

If it is necessary to raise the debt ceiling, it must be approved by the government and Congress.
However, in recent years, the debt limit issue has evolved into
Chips and weapons of partisan wrestling
The "time limit" is approaching,
It also depends on the current progress of congressional negotiations.
Do a good job of defense and wait and see.