What occurs if the US can’t pay all its payments

The US is as soon as once more embroiled in a debt ceiling drama.

Treasury Secretary Janet Yellen has repeatedly warned that the US may default on its obligations as quickly as June 1. President Joe Biden and Home Republicans try to barter a deal to handle the borrowing cap however have but to resolve their variations. The implications of a default could be monumental, each for the nation and the world.

If the debt ceiling isn’t raised in time, Treasury and the White Home should make troublesome selections about which payments to pay with the funds which are obtainable.

The US has by no means missed making funds on its payments earlier than. In reality, within the final 45 years, Congress has adjusted the debt ceiling over 60 occasions. See what the method often seems like and what a default may imply for the worldwide economic system and American households.