At present, the national debt of the United States has reached nearly 90% of annual GDP. If it reaches 150% of GDP, it will cause the risk of hyperinflation.
According to the statement of the US Treasury Department, by May this year 16, the US federal government had reached the legal debt ceiling of 14.29 trillion US dollars; If congress can't be here
If the public debt ceiling is raised before August 2, the United States will face the risk of debt default. American democracy, the two parties put forward their own plans, but they didn't buy it.
If this default is over.
Once the US debt defaults, it means that there is a huge rift in the US political society and the US economy may collapse. For a long time, the US Treasury bond market has been a powerful pillar of the US economy and society-the yield of the US Treasury bond market is even the benchmark and cornerstone of the global market! The default of American debt means that the century-old prosperity of the United States may end.
If the consequences of US debt default are "unimaginable": the United States will self-harm.
If the credit rating of the United States is downgraded, interest rates may rise and may trigger a new round of economic recession. Some Wall Street analysts said that the economic recovery was blocked because the possibility of debt default further hit consumer confidence. Another destructive consequence of the debt ceiling dispute is that the focus of discussion is no longer to take more measures to reduce the unemployment rate of 9.2%, but to reduce the deficit, which is likely to drag down economic growth. "They are playing with fire and may be burned. At present, the global economy is at a very delicate moment. If we can't reach a compromise, we will fall into an unknown and dangerous situation, "said Carlos Vegh, an economics professor at the University of Maryland. An IMF official even said that if the AAA rating of the United States is downgraded, it may cause "serious damage" to the United States and the global economy. He also said that because this matter is unprecedented, the impact will be immeasurable. In addition, lowering the credit rating may not only increase the borrowing cost of the US government, but also hurt other countries, enterprises and consumers, because the US public debt is the benchmark index of many loans.
Nouns explain America's debt ceiling.
The United States regards "debt" as the basis of macroeconomic operation, and now this debt has exceeded the maximum limit stipulated by the Constitution. ...