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<h2 id="header-0">US Congressional Budget Office Warns of Impending Government Debt Default and Increasing Budget Deficit</h2><p>The United States Congressional Budget Office (CBO) has published a report warning of the risks of the US government defaulting on its debt in the near future. According to the report, the <strong><a href="https://www.coingabbar.com/en/crypto-currency-news/crypto-lending-rates-fall-secure-us-government-debt" rel="noopener noreferrer nofollow">US government</a></strong> is at significant risk of no longer meeting its financial obligations as early as June 2021.</p><p>This risk is attributed to the statutory debt limit of $31.4tn, which was reached on January 19, 2021. The CBO predicts that if the debt limit remains unchanged, the government could face a financial crisis within the first two weeks of June.</p><p>The CBO also predicts that the federal budget deficit will increase to $1.5tn in 2023, $100bn more than previously estimated in February. The report notes that the ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant impact on total revenue for 2023.</p><p>Additionally, a shortfall in tax receipts through April has the potential to further contribute to a larger deficit than initially predicted.</p><h3 id="cbo-warns-of-potential-us-default-and-record-high-national-debt-threatening-global-financial-stability">CBO Warns of Potential US Default and Record-High National Debt, Threatening Global Financial Stability</h3><p>The CBO has projected that the US government&#39;s annual deficits will &#34;nearly double over the next decade&#34;, reaching $2.7tn in 2033. This projected deficit would result in the highest level of national debt ever recorded in the US, increasing from 98% of GDP at the end of 2021 to 119% at the end of 2033. The report highlights the significant financial challenges that the US government faces in the near future.</p><p>If the US government fails to raise the debt ceiling, it could lead to a default on US debt obligations, which could have significant economic consequences both domestically and internationally. A default could lead to higher borrowing costs for the government, higher interest rates for consumers, and a decline in the value of the US dollar. Additionally, a US default could lead to a global financial crisis, as the US Treasury bonds are considered one of the safest <strong><a href="https://www.coingabbar.com/en/crypto-blogs-details/what-you-must-know-investing-crypto" rel="noopener noreferrer nofollow">assets</a></strong> in the world.</p><p>In conclusion, the CBO report serves as a warning that the US government must address its financial challenges and increase the debt limit to avoid a potential default and a significant economic fallout.</p>

CBO Warns of Economic Fallout From US Default

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