Joe Biden said that " The world economy, which is largely dependent on the US dodal, will automatically react with a fall.

According to Meduza, the fact is that back in January 2023, the US government hit the ceiling of public debt. This limit has been set by Congress since 1917 so that the executive branch cannot borrow indefinitely.. The United States can avoid default by raising the debt ceiling, but congressmen still cannot agree: Republicans demand a sharp reduction in government spending.

Given the size of the US economy and the status of the dollar as the main reserve currency, a default could indeed trigger a global crisis..

The collapse in the US along the chain will cause debt crises in other troubled countries. US default will automatically cause a crisis in financial markets and jumps in interest rates.

However, do not panic ahead of time.. Default does not necessarily happen on June 1. Since the US authorities have "

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However, earlier Speaker of the House of Representatives Kevin McCarthy said that representatives of both parties should conclude an agreement on the US national debt limit this week..