US Set to Hit Debt Limit Today: What Happens Next?

US is about to run into a financial crisis, placing the country in a state of angst.

Exceeding the debt limit simply means that the US government would no longer be able to borrow money to pay its bills, unless Congress intervenes. The debit ceiling was raised twice under US ex-President Donald Trump been and three times in the last six months, and is now currently scoring towards $31.4tn.

The development has caused the Treasure Department into taking “drastic measures” to salvage the situation and avoid the looming tragedy. The Republicans, who recently proposed a bill to abolish the IRS, are hampering on spending reductions, while The White House's refusal to negotiate on raising or suspending the debt raises fear that US may default for first time in history.

“This is about economic stability versus economic chaos,” Deese told Kaitlan Collins on “CNN This Morning,” calling it Congress’ “basic, fundamental obligation.”

“The fallout is serious,” said Mark Zandi, chief economist at Moody’s Analytics.

“It would create chaos in financial markets and completely undermine the economy,” he added. “The economy would go into a severe recession.”

“Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability,” Yellen wrote in her letter to leaders of both parties in both chambers.

The situation is causing similar panic on social media.

@CloudAtlas_47 asked, “Who do the owe that much to? Aliens and Decepticons?”

@TrackInflation showed the inflation threat it posed.

“Aren't we living in the strongest economy ever?” @julioca51714111 tweeted.

@unusual_whales suggests that the US government lives “within their means”.

“But I was assured Janet Yellen only brought up the debt limit to distract from Biden’s documents,” @Boomieleaks said.

@WalStreet2 thinks the whole situation is being overexaggerated.

@PelosiTracker_ posted this “fun fact” that sparked controversy:

“The real problem isn't hitting the debt limit, it's the lack of political will to address our out of control spending,” someone replied.

@sjs24851 posed the “obvious solution” to America's most pressing issues.

Finally, @AdamKinzinger warns: “Pay your credit cards.”

This article was produced and syndicated by Wealth of Geeks.