Debt ceiling crisis looms in the US

[Hardkill]

The US. just reached its debt limit today. 

The new US Congress, which is now controlled by McCarthy and the far right, have been trying use the debt limit issue as a lever to get some kind of spending cut agreement made with the Biden admin and the Dems in Congress. The Biden admin has already made it clear that it will not negotiate with the House Republicans over the debt ceiling. 

If the US government fails to lift the debt ceiling, then not only will the US economy will enter into depression but so will the entire global economy because America is the largest economy in the world and because the whole world depends on our bonds.

 

[aurum]

They’re not going to let the government default. No one is that stupid.

Granted, the debt is a problem. But there’s this big panic every time the ceiling comes around and every time we raise it. This has been happening for decades.

[Hardkill]

22 minutes ago, aurum said:

They’re not going to let the government default. No one is that stupid.

Granted, the debt is a problem. But there’s this big panic every time the ceiling comes around and every time we raise it. This has been happening for decades.

I don't believe that they will let the government default but the last time this happened in the early 2010s, the stock market went down a lot, mortgage and interest rates went up, consumer went down a lot, and our bond credit rating went down permanently. 

That's why I am still worried about what will happen to our economy if or when Congress gets very close to breaching the debt ceiling, especially considering the fact that we still have an inflation problem in our country.

Edited January 20, 2023 by Hardkill