The country almost certainly would not default on its loans to bond holders, but all other payments would be thrown into doubt. That could start a cascading effect on jobs, loans, investments, prices - virtually every facet of Americans' financial lives.
Would there be broader economic effects?
Almost certainly. The most likely is a rise in interest rates, prompted by a decline in the number of bidders for new Treasury bonds. That would raise the costs of home mortgages, student loans, credit cards and auto loans. It also would increase the federal deficit by raising interest rates on the debt.
What about personal investments?
If the economy goes into a swoon, the stock market will feel the effects, and your 401(k) and other accounts could take a beating.
How about jobs?
Again, it depends on how deep the economic impact, but certainly the unemployment rate could increase because of the federal dollars that are missing and the jolt to financial markets.
What would happen to the government's triple-A bond ratings?
All three major ratings agencies have sent warnings, but it's unclear whether they would downgrade the ratings unless the United States actually defaults on its bonds, which is unlikely.
How does our situation compare to other countries with debt problems, such as Greece?
It's not nearly as bad - but the trends are headed in that direction. The U.S. public debt - what we owe to private investors, much of it held overseas - is about 70 percent the size of the economy. Counting state and local debt, it's 93 percent. In Greece, it's about 130 percent.
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