Explain the looming potential US debt default?

Explain the looming potential US debt default?

  • Government doesn't have enough dosh to pay for stuff, so will need to borrow more on 3 Nov, beyond a pre-agreed debt ceiling.
  • So either the US defaults (i.e. stops paying for things like interest obligations on previous borrowings), or it raises the debt ceiling.
  • Only way to avoid default is if Congress agrees to raise or suspend the debt ceiling.
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