Is the market chatter around the US debt ceiling much ado about nothing? The concern isn't as much about a debt default, that's ruled out, but the fireworks that will begin once the contours of the last-minute deal are known. Here's why
US government is on the verge of potentially unleashing chaos across global markets as it is days away from exhausting the extraordinary measures the US Treasury implemented in January to honour its debt obligations after the government hit its debt limit.
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How much is $31.4 trillion? Well, roughly, it is enough to fill thirty-one National Football League stadiums. That’s how big the national debt is of the United States. According to the US Congressional Budget Office, it is set to cross $46 trillion in ten years, and the rising level of national debt has stoked a major political standoff over the debt ceiling, once again.
Washington based Bipartisan Policy Center’s economic policy analyst, Arianna Fano, tells Forbes India, “The growing national debt poses a threat to private investment, labour market productivity, and public spending on critical government programmes. At nearly the size of the US economy and only growing—and with interest owed on the debt an astonishing 40 percent greater in just the first seven months of this fiscal year—policymakers of both parties must come together to explore solutions to the unsustainable fiscal path we find ourselves on.”