What happens if America defaults on its debt?

Wall Street is getting nervous questions about debt ceiling default. (Image: Getty)

Tue, 23 May 2023

By Christopher Anstey and Liz Capo McCormickInvestment bank clients are peppering Wall Street with questions about what happens if the US Treasury in coming weeks runs out of cash and does the unthinkable – failing to make payments due on Treasury securities, the bedrock of the global financial system.With the clock ticking to June 1, the date by when Treasury secretary Janet Yellen has advised her department may run out of sufficient cash, as of Monday (US time) there was still no deal announced between President Joe Biden and speaker Ke...

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