America is at risk of default! no money left to pay the bills

US Default: At present, there is an economic recession going on in the world. Its effect is also visible on many developed countries. Meanwhile, US Treasury Secretary Janet Yellen has written a warning letter on Monday (May 1) to the current US Congress government led by President Joe Biden. Janet Yellen informed through the letter that there could be a default by the beginning of next month, June 1, because they would not have enough money left to pay the bills.

After receiving a warning letter from US Treasury Secretary Janet Yellen, Joe Biden immediately called a meeting with four members of Congress. Since then, US Congress members have started working to overcome the problem.

Negative impact on America’s credit rating
In a letter to US Treasury Secretary Janet Yellen, he informed that the US would have to pay $31.4 trillion (1trillion = $100,000) immediately to avoid default. He said that we have learned from the previous loan period that increasing the loan period has a bad effect on the business.

The people of the country may have to take loans, which will have a negative impact on the credit rating of America. The budget office of the Congress had also warned on Monday that in case of less tax, the funds may run out.

financial aid to ukraine
According to a report, the US has planned to borrow $726 billion during the April to June quarter of 2023. Earlier, the US had planned to borrow $449 billion in January, which was much less than now. Economic assistance given to Ukraine at regular intervals has also come to the fore behind America’s default.

Treasury officials have also tried to warn the government about this. According to a report in the AP news agency, if America does not take action as soon as possible according to the statement of the Finance Minister, then it will be declared bankrupt by the last month of May or the beginning of June.

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