What occurs if the US hits the debt ceiling? Right here is what we know | JUST THE FAQs


The results from a default wouldbe absolutely catastrophic, not only for the United States economy,but economies all over the world. So the debt ceiling, alsoknown as the debt limit, is the maximum amount that the UnitedStates is allowed to borrow to pay off its debts. If the government debt hits that limitand the government doesn't lift the debt ceiling to be able to pay off those debts, then the United States would be unableto pay what it owes and would then default. We don't know the immediate.

Effects of a default, but we've been warned over and overagain by experts that it would be catastrophic. People who rely on social programssuch as food stamps would not get that assistance. People who rely on socialsecurity would not get that assistance. Troops, veterans would not be paidand get the help that they need. It's really a big questionmark about how far and how wide the ramifications wouldbe, not only within the United States, but how it would also impactthe rest of the world.

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3 thoughts on “What occurs if the US hits the debt ceiling? Right here is what we know | JUST THE FAQs

  1. Other worldwide locations already know what would happen if there were a default. Saudia Arabia has already began excepting currencies rather than the US greenback as payments for oil. As soon as other worldwide locations exercise away the US greenback because the reserve currency of the sector, the US economic system collapses and the relaxation of the sector can be conscious suit, accurate as it did in 1929. By losing off the US currency, other worldwide locations minimize, nevertheless now not eliminate their publicity to the US debt order.

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