Is it possible that the US will default on its debt in foreseeable future?

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The Politicus
Oct 10, 2021 09:02 AM 0 Answers
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The US has a history of having its debt grow, increasing the debt ceiling and repeating the cycle:
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Normally, the states don't default on debts denominated in their own currency, because they can always print more money. However, there are exceptions (e.g. Russia 1998).

Although probably there isn't much economic sense for the US to default, not defaulting requires the congress to increase the debt ceiling each time.

Is it possible that in the foreseeable future for whatever reason this mechanism of constantly increasing the debt ceiling will break and the US will default on its debt?

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  • October 10, 2021