US President Joe Biden.
It is being seen for the first time in American history that when he can default his loan. The condition is so bad that at present America does not have as much cash left as Gautam Adani’s total wealth. America currently has $ 57 billion in cash and Gautam Adani’s total wealth has crossed $ 64 billion. The meaning is clear that in case of shortage of cash in America and no arrangement can be made, all the wealth can be destroyed. The country can be engulfed in a big crisis and there can be uproar in the whole world, whose countdown has started. Let us also tell you how?
The effect of the debt ceiling crisis is visible
America has to save itself from default before June 1. If America defaults on loan, then it will be seen for the first time in American history. Currently, the US is paying $1.3 billion a day as interest. Whose effect has also started to be seen clearly in the country. On Tuesday, there was a decline in the US stock markets and $ 400 billion was destroyed in four hours of trading. The Finance Minister of the US has already warned that if its solution is not found, America will become the defaulter for the first time.
The consequences of default will be dire
- According to the White House, there will be a crisis on 83 lakh jobs in the country due to default.
- The world’s largest stock market i.e. Wall Street will be halved.
- There will be a decline of 6.1 percent in American GDP.
- The unemployment rate in American will increase to 5 percent.
- There will be a tremendous increase in the policy rate in the country and the interest rates will be at the high of 17 years.
- The banking crisis is not hidden from anyone and there is a continuous decline in the dollar index, in case of default both will sink further.
- In the event of America’s default, the recession in the country will be confirmed, which is 65 percent possible at present. Whose effect will be seen in the world.
Will the date limit be increased again?
Now another question has come to the fore whether America can increase the debt limit again? In fact, in the last 63 years, the debt limit has been increased 78 times. Which was last increased in the year 2021 and was increased to $ 31.4 trillion. At present, this limit has gone beyond it. According to the Economic Advisors of the White House Council, if this is not increased, there will be uproar in the whole country. That day will not be less than any doom in the world.