America is in terrible debt, and the danger of Bankruptcy, the Treasury Chief himself said this
Image Source: AP
America News: America is the most powerful country in the world. America’s economy is the most powerful in the world. But America’s economy has been faltering for the past decade. Around the year 2008, there was a situation of economic recession, and during the time of then-President Barack Obama, many banks reached the verge of bankruptcy. But even today the situation is not very good.
US Treasury Secretary Janet Yellen said that the US government’s default in repaying the $31.46 trillion debt could lead to a worldwide economic crisis. US Treasury Chief Janet Yellen urged Congress to raise the $31.4 trillion federal debt limit and avoid an unprecedented default.
Yellen said that if this could not happen, there would be a danger of economic recession all over the world. At the same time, the risk of weakening the economic leadership of America in the world will also increase a lot.
US Finance Minister warned before the meeting of G-7 Finance Ministers
Yellen issued stern warnings at a press conference ahead of a meeting in Japan with the G7, as well as the finance ministers of India, Indonesia, and Brazil. Yellen said that a default in repaying the debt would risk erasing the gains that have been achieved in the past few years by working hard to recover from the epidemic.
At the same time, it will lead to a global recession, which will take America further back. Yellen said that the crisis has arisen due to the non-cooperation of the Republican Party on this issue. The threat of default could lead to a downgrade in the credit rating of the US government.