The negotiation discussions between the Republicans and the Democrats on the issue of delaying the American debt ceiling have been stopped and the USA may find itself in a huge economic crisis | Reaching the debt ceiling means that the government will not be able to borrow any more money
Reports in the American economic press regarding the debates on the debt ceiling crisis in the USA announced that the Speaker of the House of Representatives, Kevin McCarthy, announced the end of negotiations with the White House, and it is currently unclear when it will resume.
The US could reach its debt ceiling in ten days, on June 1st if Congress fails to raise or delay the debt ceiling. Reaching the debt ceiling means the government cannot borrow any more money.
Reaching the debt ceiling, for the first time in US history, could shatter confidence in the US as an international business partner. Experts have warned that in the event that we reach a situation where the government is shut down, this situation may cause the USA to enter a recession and lead to an increase in unemployment. In addition, such a situation will also result in the USA not being able to borrow money to pay the salaries of government employees and military personnel, insurance deposits the national and other obligations. Even basic services will not work such as the National Weather Service, which is operated with federal funding that many American citizens rely on.
In a letter to members of Congress, US Treasury Secretary Janet Yellen said that “we have learned from past debt limit deadlocks that waiting until the last minute to suspend or increase the debt ceiling can cause serious damage to business and consumer confidence, raising the short term. Borrowing costs for taxpayers, and negatively impacting the US credit rating.”