Infographic: The US Debt Ceiling Crisis – Local Politics, Global Implications
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According to the U.S. Treasury, by next Tuesday, August 2 the U.S. Congress must reach consensus and pass some kind of agreement to allow the U.S. Government to borrow beyond the $14.3 trillion debt ceiling, which was last raised on February 12, 2010. Failure to do so will leave the U.S. government with insufficient funds to continue its payments, including its upcoming debt obligations. This “default,” if it happens, would downgrade America’s credit rating, increase its borrowing costs, and create havoc as yet unknown on world markets.
According to the U.S. Treasury, by next Tuesday, August 2 the U.S. Congress must reach consensus and pass some kind of agreement to allow the U.S. Government to borrow beyond the $14.3 trillion debt ceiling, which was last raised on February 12, 2010. Failure to do so will leave the U.S. government with insufficient funds to continue its payments, including its upcoming debt obligations. This “default,” if it happens, would downgrade America’s credit rating, increase its borrowing costs, and create havoc as yet unknown on world markets.
Related: Downgrade Doldrums: US Credit Rating May Drop Even if Debt Deal is Reached
More than half of America’s public debt is currently held by foreign investors. Check out who’s owed what:
Source: American Dream, American Debt, by OANDA
