The National Debt Clock US (United States) shows the outstanding American debt owed by the Federal government. The National Debt includes public debt, federal trust funds, and government accounts.
If you have been to New York, the National Debt Clock is actually a billboard-sized running total display that was formerly located near Sixth Avenue, also near Time Square. The clock was since moved to One Bryant Park.
2023 US Debt Default
In January 2023, the United States hit its debt ceiling. The total national debt and the debt ceiling both stood at $31.4 trillion.
The debt ceiling has been increased multiple times with the most recent increase in December 2021.
Hitting the debt ceiling will hinder the government’s ability to finance its operations, meaning a government shut down.
If there really is a default on the debt ceiling, it will create a financial shock all over the world. – APEC 2013, Bali
Over the weekends, you probably have seen multiple news on Television and news websites on the US Debt Default.
If you think that the US Debt Default does not affect other countries, think again. As shared in APEC 2012 held in Bali, a default on the debt ceiling by the US will create a financial shock all over the world.
How Stock Markets Have Reacted to US Debt Default?
As expected, US stocks ended lower as negative news on the US debt ceiling plague investors.
On Friday, 19th May 2023, the Dow Jones Industrial Average dropped 109.28 points (0.33%) to 33,426.63. The S&P 500 dropped 0.14% to 4,191.98. The Nasdaq Composite slipped 0.24% to 12,657.90.
On the other hand, The Straits Times Index (STI) rose 0.63% on Friday as fears of US Debt Default eases.
My conclusion is that there are mixed feelings among investors regarding the US Debt Default.
Here are some good read ups I have found regarding the the topic on US Debt Default.
US Debt Default Risks and its Implications, DBS Bank, 27 April 2023.
US Debt Ceiling: Will It Trigger a Stock Market Crash?, The Fifth Person, 19 May 2023