What Happens If The U. S. Can t Pay Its Debt

The recent debt ceiling standoff gave a glimpse into how catastrophic a federal default would be for the U. S. economy. While a bipartisan agreement is the easiest solution to the crisis, there are other possible solutions to breaking the standoff, including a 1 trillion coin that has gained traction in recent years. So what exactly would happen if the U. S. government fails to raise the debt ceiling, and can a 1 trillion coin really put a stop to the crisis Despite the shortterm deal struck between the Republicans and the Democrats in early October, the debt ceiling crisis is far from over. Congress needs to decide by Dec. 3 if the U. S. government will raise the debt ceiling or default on its loans. But there are other possible solutions besides bipartisan agreement. The debt ceiling can also be raised by a process known as budget reconciliation. First introduced in 1974, this process can expedite the passage of certain tax, spending and debtlimit legislation. What would oth