Experts and analysts warn that the failure of the United States to pay its debt threatens to undermine the position of the American global currency and the occurrence of a global financial crisis, which will deal a blow to companies and families in the world.
Some experts believe that default is likely to affect the dollar’s global standing, as governments and companies will be forced to pay their bills in another currency.
Experts mentioned that most of the countries’ foreign trade exchanges take place in the US currency, and pointed out that following the policy of brinkmanship with the debt ceiling has become a habit of US governments.
Yesterday, the International Monetary Fund expressed its hope that the global economy would not have to wait until the last minute for a solution to the US debt ceiling crisis.
The US government debt ceiling currently stands at more than $31.4 trillion, and Republicans in the US Congress require budget cuts in exchange for an agreement to raise the public debt ceiling.
And last January, the US Treasury notified Congress of the start of applying exceptional measures, as a result of the rise in the amount of debt and reaching the specified ceiling.
Two days ago, the Treasury renewed its warnings, saying it was now “very likely” that the ministry’s funds would run out in June 2023, and indicated that the moment might come on the first day of the month.
This article was originally published by RT.
