U.S. Debt Ceiling Crisis: What Happens If The U.S. Defaults?

🔵 In this comprehensive video, we delve deep into the U.S. Debt Ceiling, the looming threat of US Default, and the implications this would have on the nation and the world.

Ever wondered about the significance of the United States Debt Ceiling and why it keeps getting raised? The US Debt Ceiling has been raised a staggering 42 times since 1981, but what does that mean for you, and why should you care? With the potential risk of the Debt Ceiling not being raised, the United States could fall into default. This video breaks down what that means for the country's economy, its people, and its status on the world stage.

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If the U.S. were to default, it could fail to meet crucial financial obligations, such as paying government employees or Social Security benefits. This could have severe effects on the stock market, U.S. credit score, and global power status. But how does the debt ceiling work and how could it impact you? Find out in this detailed analysis, which provides easy-to-understand explanations for complex financial concepts.

Since the making of this video, the U.S. has never defaulted on its debt, largely due to its powers to tax and print its own currency. However, these tools are not always enough, and the U.S. government often finds itself relying on selling bonds or printing more cash to make up for shortfalls. We'll discuss these strategies and how they tie into the debt ceiling in this video.

The U.S. Treasury plays a significant role in the country's finance, handling the income and spending of the funds. Still, it does not make decisions about the debt limit or government spending. The complex interplay between the president and Congress can sometimes make this a convoluted and politically-charged issue. This video sheds light on how these decisions are made and why they are so critical to the U.S. economy and the average American.

President Reagan holds the record for the most debt ceiling increases since the 1980s, raising it a total of 18 times. We'll take a closer look at the debt history of other U.S. Presidents, including Trump, Clinton, Bush, and Obama, and the factors that contributed to their fiscal decisions.

What happens if the United States actually defaults? From job losses and skyrocketing interest rates to a potential stock market crash, the consequences could be severe. We'll cover these risks and more in the video.

Join us as we demystify the U.S. Debt Ceiling, its potential implications for the U.S. economy, and how it could directly impact you. Don't forget to share your thoughts on the U.S. debt limit in the comment section below.

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#USDebtCeiling #DebtCeiling #UnitedStatesDebtCeiling #USDefault #USeconomy #debt #default #UStreasury #PresidentReagan #PresidentTrump #PresidentClinton #PresidentBush #PresidentObama #stockmarket #tax #governmentbonds

⚠️ The information in this video is for educational purposes only and does not constitute financial advice. Please do your own research or consult a financial advisor before making any investment decisions.

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[leesummers]

Only the government can keep asking their credit card company for a credit line increase when they never pay down the principal 😅

[KACTA]

Simple explanation 👌 easily understandable,
Can we expect next video on " Impact of US default on other nations"

[dragonslayer]

Some of the images in this video looked AI created

[GUNNERakaKelt]

The government... Like a spoiled teenager with daddy's credit card.

[BobSharpe]

A bit of a different video style today!

[NatesHomeTours]

The two guys I watch the most for investment help is you and Meet Kevin. I preffer they way you get right to the point and don't drag it out to 20 minutes just to get all those extra add breaks.

[TortoiseInvesting]

Honestly the way you broke this down was perfect. Great video for those who may not understand! We do need to find a way to spend less as a nation.

[DavidPerez-ojdv]

THE COST OF LIVING IN THIS COUNTRY IS CRAZY SPEND SPEND

[joselibonilla]

We are not in a debt ceiling right now. So why everything is still going up in price. Why the US is supporting Ukraine.

[af]

Banks, consumer advocate groups, should sue for dereliction of duty if these politicians actually "let" the US default. The first order of Government is to protect the people..to let loose on the people and the world the carnage that a default will bring is a massive deviation and shirk of that responsibility.

[rssharma]

If US defaults, I want to know if I can default on paying my taxes 😀😁😄

[newbiegarden]

Abolish it, problem solved. The problem is the coward politicians.

[jimmylee]

As a foreigner watching the Debt Ceiling crisis, all I can say is the result of irresponsible government & a plutocracy that runs the country. For decades the government budget had deficits & the government borrowed to cover the shortfall. It is easy to borrow so no thought is given to cutting spending to arrive at a budget surplus to repay the debt. Consequently, the borrowing reached a debt ceiling of $31.4 trillion. Now the government is asking for the ceiling to be raised to borrow more to repay the Treasury bonds maturing so the government will not go into default. But this is only a short relief as there are Treasury bonds maturing in future years. The fact is, the government will one day face bankruptcy. Raising the debt ceiling is deferring the date of bankruptcy.
The government must cut spending to have budget surplus which can be used to repay the debt without borrowing. For a start the government can shut 50% of the 800 military bases around the world & use the money to repay the debt. But this would upset the Military Industrial Complex (MIC) which has strong influence on the government because the MIC donates money to the politicians for their election. Also the MIC wants the government to continue its hegemony to control & bully the world. Just look at how many wars the US had conducted since WW2 - spending $trillions on wars, sending money & weapons to Ukraine etc. The price for hegemony is bankruptcy.
It will be great is the US goes bankrupt & there is global recession. It’s a price we have to pay for world peace.
It will take generations of Americans to repay the debt. The US government should be spending money to lift the poor living in poverty & or are homeless, instead of spending money on wars & weapons. The government should also spend money improving the infrastructure- like high speed rail. The subways & railway system in NYC are disgraceful compared to China.
It is only a matter of time the US will be bankrupt.

[ac]

Stop spending money on stupid programs. Stop giving away money to other countries. Cut and scale back government departments. Look at the long game. Learn to save. Follow a budget.

[leahsmith]

I just think that it's a complete double standard. The government says do-as-i-say-not-as-i-do. My debt to income ratio is too high, so I cannot purchase a home. However, the government continues to incur debts that exceeds what they bring in, with no repercussions.

The government takes its time making payments, but will intervene and take everything you own if your payments are late.

Even though it would be catastrophic for a while, maybe we have to be fault and start anew. It doesn't feel like we can get out of the hole we are currently in

[RB-jeyj]

I hope it crashes 45% I have $750k in cash!!! I'll buy everything PENNIES on the dollar!

[Jmarsteller]

Ronald Reagan did his best in his time to apply modern economic theory in order to avoid a potential catastrophe. However, you can’t keep shoving ‘new’ money into an Economy and hoping the inflation won’t catch up until the problem in question is over. It happens over and over. I think the republicans playing hard hall on this one is a GOOD thing- I feel like the consequences of our (As in OUR government officials) spending hasn’t been felt in any sense. If we don’t do something drastic then we will have another depression. I hope the government officials will actually do something with our spending habits to fix the problem. EVERYTHING the government does is extremely inefficient. If you’ve ever worked in government or the military you will know this. I’m constantly afraid for my future and I don’t think it was ever necessary for me to be. Better decisions could absolutely have been made.

[Grenade]

We should just print 40 trillion pay all are debt.... yes that's how that can work no no arguing we have the option to do so of we have a way to print money.... they don't need to tax us for it soooo stupid.... moving to Canada

[BluelightGaming]

Our economy is total BS. We have a private company that is in control of printing our money, which isn't really worth the paper it's printed on... And our government is an example of the most irresponsible spender ever.. Spending more than it makes on wasteful things then wanting more credit so it can keep doing that with no hopes of ever paying it back. Insane.

[ExtremeForever]

The could and should pay their workers less and cut some of their useless fake political workforce that are just sitting and sleeping around doing nothing. This is a good start to spend less.