The longer it goes on, the uglier the economic downtown would likely be, experts say. The cost of borrowing would also go up, and the availability of credit would be lower – making it more expensive and challenging to get a personal loan, car loan or mortgage. "Their wealth will be diminished by what's going on in the markets because investors are going to be discounting the possibility that lawmakers don't get together and the economy goes into recession and there will be a default on the debt." "The first thing that will happen is people's 401K plans will be worth less," said Mark Zandi, chief economist for Moody's Analytics. not paying even the more insignificant bills. From the stock market to the bond market and the foreign exchange, markets would be roiled by the U.S. There would be volatility in markets – with a lot of people seeing red. What would the government not paying its bills mean for the economy? "If we hit June 1, that means the Treasury will have a difficult time predicting on a daily basis if that day's tax revenues will be enough to cover that day's spending obligations," said Brian Riedl, senior fellow at think tank The Manhattan Institute. hits the X-date without lawmakers reaching an agreement, it would be uncharted territory. "The only option that really leaves our economy in good shape is - and our financial system - is raising the debt ceiling." Every option is a bad option," said Yellen. "If Congress doesn't raise the debt ceiling, the president will have to make some decisions about what to do with the resources we do have, and there are a variety of different options, but there are no good options. Biden and the Treasury can take to prevent disaster if Congress does not act. She has warned that there is no action Mr. "This would be a huge hit to the economy and really an economic catastrophe," Treasury Secretary Janet Yellen told CNBC on Monday. If Congress does not raise or suspend the debt limit, the Treasury Department estimates the United States could run out of money as early as June 1, giving a divided Congress just weeks to reach a deal. Other variations include yingguo guizi (English devil) and faguo guizi (French devil).As President Joe Biden and congressional leaders are in a high-stakes standoff over the debt limit, experts warn it would be catastrophic if leaders do not reach an agreement in time – and launch the economy into chaos. Riben guizi is a Japanese devil (foreigner) while a yang guizi is a Western devil. Guizi: Commonly used, guizi is a centuries-old word for devil in Mandarin Chinese that is often reserved for foreigners.Sai Yan: Sai yan (pronounced "sigh-yahn") is sometimes used to refer to Western people. The word translates loosely to "foreign devil" or "ghost man." Although the origins were derogatory and negative, the word is often used informally to describe foreign visitors with light skin.
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