If the USA Didn’t Raise Debt Ceiling, what will happen?

What is Debt Ceiling?

Debt ceiling means the limit on the amount of money the U.S. government can borrow. Well… I am not shocked that the debt ceiling is raised (once more) die to it has been raised repeatedly.

The current limit is about US$14,3 trillion, a ceiling that the government reached in May.

What if the Debt Ceiling was not raised?

If the US chooses to default on its pay-out, then it would have to declare involuntary bankruptcy which might tarnish the reputation of the world’s no.1 economy. For those who still recall, when Lehman Brothers declared bankrupt in 2008, the worldwide economic system was vastly affected. Imagine what’s going to happen to the global economic system if the US declares bankruptcy? What happens then? Well, we don’t know for sure, however we are able to make some educated guesses about what may happen and how it will impact your life.

1) Your life savings could possibly be decreased to nothing virtually overnight

|Nevertheless, the thing governments have traditionally executed once they simply cannot pay their debts is print more money. The problem with that is the more you increase the money supply, the less the money you have already got on hand is worth. This could wipe out the savings of a lifetime in a relatively short period. Think about spending billions of dollars just to purchase a loaf of bread.

2) Your taxes will skyrocket

We have been conned into thinking that we are able to fund a massive government on the backs of the rich. This is simply not so. It is not working right now and it is not going to happen in the future. We cannot tax the wealthy sufficient to pay off our debt or even enough to keep the government going long-term. Even when we could, the wealthy have the resources to flee the country for greener pastures if they’re being taxed into oblivion.

3) Your life might be in danger

Devoid of a job or means to support their families, people will turn to crime out of desperation. Also protests/riots, this is when things turn bloody.

4) Your funds from the government will dramatically lower or cease altogether

Contrary to what some folks imagine, Medicare and Social Security are paid out of the same fund that pays for everything else. In other phrases, if the government goes bankrupt, there is no such thing as a money put aside to pay for these programs.

5) You will have a dramatically reduced standard of living

If taxes and inflation escalate dramatically, both of which are very likely if we go bankrupt, economic activity will slow to a crawl and we’ll go into a depression. Businesses will close left and right, the stock market will tank, unemployment will soar to heights not seen since the thirties, and the government won’t be in a position to help very much.

6) Surfacing of class warfare

With dividing lines drawn between have’s vs. have-not’s, |it would turn out to be unpopular and even harmful to be successful.

7) Increasing in corruption

Low-level public service officers will look to complement their earnings via bribery and kickbacks.

Arise of black economy