The Dire Consequences of a US Debt Default.

The US government is at risk of defaulting on its debt as Congress debates whether to raise the debt ceiling. If a default were to occur, it would have catastrophic consequences for the economy, including a recession and turmoil in financial markets. Even a short breach of obligations would lead to higher interest rates and a bigger tax burden for Americans. The failure to resolve the issue could also fuel calls for alternatives to the US dollar as the international currency.