18 July 2011
If they don’t do it in time, the United States will be unable to meet its obligations to holders of Treasury bonds. Moreover, even payments to recipients of Social Security and the government pension plan will be undecided. In addition to it, default can cause higher interest rates on mortgages, car loans and credit cards. The U.S. government borrowing would become more expensive, so the consequences would be quite serious not only in US but around the World.
Some observers say there are talks in Washington about the future November 2012 election in which the economic situation may determine whether Obama wins another President term.