The Impending Threat of a US Debt Default and Global Economic Chaos.
If the US government does not raise its debt ceiling, it will default on its $31.4tr debt, which would have devastating effects on the global economy. The US would stop doling out welfare payments and support to people, which would hit their ability to spend and pay their bills, leading to a recession. Mortgages in the UK would become more expensive, and UK unemployment would rise. Investors could demand a higher interest rate to buy UK government debt, and the value of the dollar is expected to drop sharply, raising the cost of living for millions of people. The US accounts for 60% of the value of global stock markets, and stock markets are likely to react badly to a US default.
- Could a US debt default unleash global chaos? BBC
- What Would Happen if the U.S. Defaulted on Its Debt The New York Times
- Yellen warns bank CEOs of 'severe' economic consequences if debt ceiling isn't addressed CNN
- What the markets are signaling about the risk of a US debt default The Hill
- Here's when the government's bills are due as U.S. tries to avoid default CNBC
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