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 wrote that the fall in oil prices last week could be a harbinger of default.
  • Photos used: Atlas Oil Company
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  1. Kuramori Reika Offline Kuramori Reika
    Kuramori Reika (Kuramori Reika) 25 May 2023 23: 10
    This default in June will break not only the US economy, but also the Russian economy. Although there is no trade between us, there is trade between many other countries that are still very much pegged to the US dollar. The global process of getting rid of dollars among these many countries has just begun in earnest, they still have to get rid of and get rid of this waste paper. Let the default be postponed for a couple of years, when all our trading partners come out of the risk zone and float papers to Europe, Australia and Canada. Then the collapse of the economy will occur locally. Now this very default will be too destructive for everyone.
  2. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 25 May 2023 23: 22
    The default will not break the dollar financial system, which includes the whole world - international banks and institutions, but it will deal a strong blow to the dollar infrastructure, especially if the PRC steps in. It is possible that they will raise the public debt, but then they will have to balance income and expenses, and this will be extremely difficult against the background of the trend of increasing influence of the renminbi
  3. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 25 May 2023 23: 37
    The old story immediately comes to mind:
    Do you believe in God?
    And in retirement?
    And in the default of the dollar?
    1. E NOT Offline E NOT
      E NOT (Eugene) 26 May 2023 02: 32
      I believe in the speeches of presidents
      And into the integrity of the guards,
      To take care of the bank for its clients,
      I believe in mermaids, in brownies
  4. Pat Rick Offline Pat Rick
    Pat Rick 26 May 2023 08: 02
    If the dollar exchange rate against the main world currencies falls, then the dollar-denominated prices for oil, gas, gold, that is, for what Russia exports, will fall. Is it good for Russia?
  5. Raymond Online Raymond
    Raymond (Raymond) 27 May 2023 13: 36
    Don't worry, the debt ceiling will be raised. There are always many gestures a little early, but the result is known in advance.
  6. Ivan Ivanych 68743684 (Sergei) 27 May 2023 20: 56
    living forever in debt will not work, the final is inevitable