Impact and Prevention of the US National Debt Crisis

The US national debt could cause far-reaching consequences for the global economy and society if the country defaults. A default could trigger a global economic crisis, leading to the devaluation of the US dollar and severe disruptions to international trade. Investors might panic and pull out funds from other markets, causing a knock-on effect on the global economy. Domestically, a US default could prompt unemployment and inflation, eroding purchasing power and job security, and lead to fewer social services, hitting vulnerable populations the hardest. The US government can stave off a national debt crisis by implementing policy changes like fiscal responsibility, monetary policy reform, fostering international cooperation, and invoking the 14th amendment. Alternatively, a US default could prompt a surge in Bitcoin and other cryptocurrencies, as people look for alternative stores of value. Policymakers must implement solutions that protect the US economy and the global financial system, such as embracing digital currencies and decentralized finance to create a robust, inclusive, and adaptive global economy.