U.S. GOVERNMENT RUNNING OUT OF CASH

Current U.S. National debt stands at US $ 28.5 trillion. It could swell to US$ 35 trillion by the end of the year. The gap between government spending and revenue has swelled to more than US$ 2.2 trillion in the 2021 fiscal year.

The U.S. government could run out of cash to pay its bills by mid-october. If the U.S. fails to raise or suspend its debt limit, it would eventually have to temporarily default on some of its obligations, which may have serious and négative economic implications. Interest rate would likely spike and demand for Treasury woul drop, even the threat of default can cause borrowing costs to increase.