The sword of Damocles hanging over the US

If no solution is taken within the next week, the US will become a ‘defaulter’
The balance amount is less than the wealth of Indian Billionaire Gautam Adani

(‘Defaulter’ means the end of a country’s ability to borrow)

US Finance Minister Janet Yellen

New Delhi – The US, a superpower, is facing a historical financial crisis. Its debt limit crisis is increasing day by day. Finance Minister Janet Yellen has warned that if the US Government does not find a solution immediately, then the US could be declared as a ‘defaulter’ within a week that is by June 1st. If this happens then it will be the first time in America’s 250-year history of democracy that this kind of humiliation will be imposed onit. This situation has pushed the Government led by President Joe Biden into a huge crisis.

Currently, the country’s coffers have only $57 billion left, which is less than the total wealth of Indian billionaire Gautam Adani. According to the current data published by the Bloomberg Billionaires Index, Adani’s net worth is $64.2 billion. America has to spend at least 1.3 billion dollars per day as interest. But as the deadline is approaching markets are falling and borrowing costs are rising.

The U.S. has kept its financial commitments since 1789 by paying its bills on time. Congress has prevented default 78 times. It’s essential they do so again. pic.twitter.com/azPjhFdUry

— Secretary Janet Yellen (@SecYellen) May 22, 2023

What exactly is the case ?

The US is considered to have the highest borrowing capacity in the world. The debt ceiling is the limit that the US federal Government can borrow. Since 1960, this limit has been increased 78 times and the last time it was increased, was to 31.4 trillion dollars in December 2021. But now it has crossed this limit. The US is currently considered as the best place in the world to invest. The US Government is always borrowing money so that interest rates remain low and the dollar becomes the world’s reserve currency. US Government bonds are considered the most attractive in the world. Hence, the US Government spends a lot of money on defence, schools, roads, infrastructure, technology and science.