What happens if the United States defaults on its debt? Are there economic ramifications just for coming close to defaulting? Amid polarized Washington negotiations to raise the debt ceiling, outlets across the spectrum are seeking to answer these questions.
An analysis from Reuters cited how a standoff in 2011 over the debt ceiling led the U.S. credit rating to be downgraded for the first time in national history, determining even close calls rattle investors. The risk of default, the analysis states, “could push some investors to move money into international equities and foreign governments' bonds.” A default would impact not just the U.S.
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