For the past 6 months, a piece of news such as the US debt ceiling crisis has been floating all over the internet and on the news channel.
but first, let us understand what the US debt ceiling crisis is, and why it is gaining so much popularity, and what are the implications if it happens.
the government also takes money by issuing bonds, and treasury bills and promises to pay out a certain amount of interest after bonds mature.
but what happens if they fail to give out the interest amount after the bond matures, they become default and people will sell the bonds.
At present, the US has debt of more than $28 trillion dollars on their heads and if they fail to provide money, they become in default.
On the other hand, most of the well-known banks in US have collapsed, which further increases the kinetics of the situation.
If the US government collapses or defaults, stock markets all over the world will crash, and economies collapse and country can go into recession.
on the other hand US Government are continuously increasing the interest rate which further increases the severity of the situation.