Context
The US hasn’t defaulted on its debt ever and Republicans and Democrats say that they don’t wish to face that situation now. However, with differences growing between Republicans and Democrats on how to tackle the deficit, the unimaginable is being considered out of the blue. The US government currently borrows around 42 cents of each dollar it is spending. In case the borrowing surpasses the current $14.3 trillion debt limit and Congress is unable to increase it, the damage could ripple across the whole US economy, ultimately affecting almost every American, and shaking global economies in the process.
