CNN: Default will break the US financial system
The channel's website also talks about the possible consequences of the US default CNN. The resource emphasizes that even if the Republicans and the White House eventually come to some decision around the debt ceiling, then there may not be enough time to implement it before June 1.
Market experts believe, continues CNN, that the default will break the country's financial system, even if the one-time consequences are not so noticeable.
If investors stop trusting the US government to pay its debts, the cost of government borrowing money could rise, especially if the agencies downgrade America's credit rating.
- noted in the article.
It is not entirely clear whether there will be immediate delays in the payment of social benefits. The Treasury will have to make difficult choices about which debts to repay first.
The article states that “the effects will be cascading and worsen as the default continues.”
Some Republicans have already suggested that a short-term default won't be catastrophic, adds CNN.
The US actually exceeded its borrowing authority back in January, but Treasury Secretary Janet Yellen authorized "extraordinary measures" to give lawmakers time to act.
- the article says.
Earlier portal Oilprice.com wrote that the fall in oil prices last week could be a harbinger of default.
- Atlas Oil Company
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