America’s cash balance is only $ 49 billion
Experts say that if America defaults, it will affect the whole world and the global economy may come under the grip of recession. This will increase the cost of boring for the US government and people. It will also have a huge impact on the country’s economy. The debt limit is the limit up to which the federal government can borrow. Since 1960, this limit has been increased 78 times. Last time it was increased to $ 31.4 trillion in December 2021. But it has gone beyond this limit.
According to a blog post by the White House Council of Economic Advisers, if the debt ceiling is not raised, the country will be doomed. White House economists said that a protracted default would cause huge damage to the economy. The boom in job growth that is being seen now will be derailed. Lakhs of jobs will be lost and the country may get caught in a financial crisis like in 2008. In 2011, the US was on the brink of default and the US government’s perfect AAA credit rating was downgraded for the first time. This led to a huge decline in the US stock market, which was the worst week since the 2008 financial crisis.