More debt defaults are looming in China, as troubled developers grapple with a weak outlook for home sales and continue to face challenges in raising funds. According to Creditsights, 124.5 billion dollars of bonds have already defaulted in the 175 billion property dollar bond sector, including China's once-leading developer, Country Garden. 60.5 billion dollars in Chinese property bonds are due in the next six months, with offshore bonds comprising a significant portion.

China: $124.5 BN of bonds have already defaulted

Troubled developers grapple with a weak outlook for home sales and continue to face challenges in raising funds.

China's property developers in crossfire

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<p>The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling.&nbsp;</p>

<p>Biden said on Thursday (May 25) that "there will be no default". He added that his negotiations with Republican Speaker Kevin McCarthy had been "productive".&nbsp;</p>

<p>White House Press Secretary Karine Jean-Pierre also commented on the current situation. Jean-Pierre said, "The team has had productive discussions. Clearly, that means there continues to be a path forward."&nbsp;</p>

<p>Without providing any details about what both parties were working on, Jean-Pierre stated that the most recent round of talks took place on Thursday.&nbsp;</p>

<p>She said, "Both sides will have to understand that neither side is going to get everything that they want."&nbsp;</p>

<p>The US might default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts.&nbsp;</p>

<p>US Treasury Secretary Janet Yellen reiterated that her department may run out of cash to pay the nation's bills as soon as June 1, she added that she will update Congress shortly about government finances.&nbsp;</p>

<p><strong>WATCH |&nbsp;Treasury Secretary says US won’t be able to pay all bills by June without an increase in the debt ceiling&nbsp;</strong></p>

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<p>Despite Biden's affirmation, Democratic minority leader Hakeem Jeffries slammed the Republicans from the House floor, accusing them of having abandoned their jobs in Washington to "risk a dangerous default in a crisis that they've created."&nbsp;</p>

<p>He added, "And these Republicans, they're going to say that Joe Biden refused to sit down with them. That's a fake narrative that they've continued to try to put into the public domain."&nbsp;</p>

<p>House Republicans are demanding up to $130 billion in cuts, with spending next year set at 2022 levels. They also seek stricter employment requirements for assistance recipients and the recoupment of unspent pandemic aid funds.</p>

<p>Meanwhile, Democrats oppose the proposed cuts and want Republicans to agree to a no-strings-attached raise, as they have done dozens of times before.&nbsp;</p>

<h2><strong>Harm to military 'readiness, morale'&nbsp;</strong></h2>

<p>Top US officer General Mark Milley said Thursday that a US government default would harm the country's military, hitting readiness and morale.&nbsp;</p>

<p>The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally."&nbsp;</p>

<p>"If we defaulted, that would... have significant economic consequences, which would then translate into national security consequences -- paying troops, the morale of troops, weapons systems, contracts, all of that would be impacted," Milley said.&nbsp;</p>

<p>"Readiness clearly would be impacted. So our large-scale exercises that we do at various training centers would probably either slow down or come to a halt in many, many cases," he added.&nbsp;</p>

<p><em>(With inputs from agencies)&nbsp;</em></p>

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The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling.

The United States is facing an unprecedented crisis of debt default, but President Joe Biden believes that debt default will be avoided as crucial time passes on a race to find agreement between the White House and Republican negotiators on raising the debt ceiling. Biden said on Thursday (May 25) that "there will be no default". He added that his negotiations with Republican Speaker Kevin McCarthy had been "productive". White House Press Secretary Karine Jean-Pierre also commented on the current situation. Jean-Pierre said, "The team has had productive discussions. Clearly, that means there continues to be a path forward." Without providing any details about what both parties were working on, Jean-Pierre stated that the most recent round of talks took place on Thursday. She said, "Both sides will have to understand that neither side is going to get everything that they want." The US might default if the government does not agree to raise the borrowing limit from its current 31.4 trillion dollars in order to maintain paying the nation's debts. US Treasury Secretary Janet Yellen reiterated that her department may run out of cash to pay the nation's bills as soon as June 1, she added that she will update Congress shortly about government finances. WATCH | Treasury Secretary says US won’t be able to pay all bills by June without an increase in the debt ceiling × Despite Biden's affirmation, Democratic minority leader Hakeem Jeffries slammed the Republicans from the House floor, accusing them of having abandoned their jobs in Washington to "risk a dangerous default in a crisis that they've created." He added, "And these Republicans, they're going to say that Joe Biden refused to sit down with them. That's a fake narrative that they've continued to try to put into the public domain." House Republicans are demanding up to $130 billion in cuts, with spending next year set at 2022 levels. They also seek stricter employment requirements for assistance recipients and the recoupment of unspent pandemic aid funds. Meanwhile, Democrats oppose the proposed cuts and want Republicans to agree to a no-strings-attached raise, as they have done dozens of times before. Harm to military 'readiness, morale' Top US officer General Mark Milley said Thursday that a US government default would harm the country's military, hitting readiness and morale. The chairman of the Joint Chiefs of Staff told journalists at the Pentagon that "there would be a very significant negative impact on the readiness, morale and capabilities of United States military if we defaulted" as well as "reputational damage internationally." "If we defaulted, that would... have significant economic consequences, which would then translate into national security consequences -- paying troops, the morale of troops, weapons systems, contracts, all of that would be impacted," Milley said. "Readiness clearly would be impacted. So our large-scale exercises that we do at various training centers would probably either slow down or come to a halt in many, many cases," he added. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US default would harm US military 'readiness and morale', but Biden vows respite

<p>The United States is the largest economy in the world. The US Dollar is an unofficial global currency sought after by almost everyone. These two facts are enough to convince anyone of the pre-eminent position the country enjoys in all things money. Of course, things are more complicated than blanket statements, but in all discussions on the topic, the US invariably has a central&nbsp;position.</p>

<p>So it follows that if the US economy just sneezes, the entire world gets a fever, and currently, the US is tottering on debt default due to the debt ceiling crisis.</p>

<h2><strong>What is debt default?</strong></h2>

<p>In simple words, debt default is the inability of a borrower to pay back the debt. Such a default may not cause massive problems if it is just a private individual defaulting. But if a country defaults on its debts, there is sure to be a&nbsp;ripple effect in the world. And if that country is the USA, then all bets are off on the future of the world economy or even its stability and existence.</p>

<p><strong>Watch | US Treasury Secretary warns country running out of cash</strong></p>

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<h2><strong>What is debt ceiling?</strong></h2>

<p>The US has been running a fiscal deficit since 2001. This means that the income of the US government is less than its expenditure.</p>

<p>To meet its expenses and commitments (like debt repayment), the US has to borrow money. Now there is a limit up to which the US government can borrow. This is called a debt ceiling.</p>

<p>US Congress has the power to approve funds and budgets for the US government. The Congress approves the debt ceiling. If the government borrowings reach this limit, Congress takes a decision on raising the debt ceiling in accordance with the situation before the country.</p>

<h2>What will happen if the debt ceiling is not increased?</h2>

<p>The US will default on its debt if the debt ceiling is not raised. This means that it will not have money to pay off its loans.</p>

<h2><strong>So what?</strong></h2>

<p>This is not a situation where you are just delaying payments to a friend. In case the US defaults on its debts, it will mean that the richest, most powerful nation with all the might in the world is making an apologetic face and saying 'I can't pay off the loan, brother'.</p>

<p>Since the world economy more or&nbsp;less revolves around the US, it is considered to be the safest economy to invest in. Nations and entities are more than eager to lend to the US as there is a near-100 per cent guarantee that the debt will be repaid in full with interest. US debt default would shatter this image.</p>

<h2><strong>What happens if debt ceiling is breached or US defaults on debt?</strong></h2>

<p>Disaster! The US economy would be very badly hit. Moody's Analytics has estimated that if the US breaches the debt limit for just a week,&nbsp;1.5 million people will lose their jobs.</p>

<p>And if debt default stretches well into the summer, US economic growth will sink, and 7.8 million jobs will vanish into thin air. Borrowing rates would rise quickly. A stock market nosedive would mean that USD 10 trillion in household wealth would be erased.</p>

<p>And if the US economy goes down, those heavily invested in it (almost the entire world) will feel the heat in a manner most catastrophic.</p>

<h2><strong>So by when the debt ceiling needs to be raised to avoid all this?</strong></h2>

<p>In January, US Treasury Secretary Janet Yellen had said that government could pay its bill only through early June without increasing the limit.</p>

<p>June is not too far away.&nbsp;</p>

<h2><strong>So raise the debt ceiling!&nbsp;What's the holdup?</strong></h2>

<p>The decision lies with the US Congress. And usual elements of a political fight between the Democratic Party and the Republican Party are on show here. The Biden administration and the Republicans are currently at an impasse. Proposals from one side are unacceptable to the other.</p>

<p>In the month of April this year, Republicans in the House of Representatives passed a bill that will see the debt ceiling raised by USD 1.5 trillion or till March 31, 2014, whichever comes first. The House of Representatives is controlled by the Republicans.</p>

<p>However, Republicans have also set several conditions which are so far unacceptable to Biden and Democrats.</p>

<p>Republicans are arguing that the measures they've suggested are important for the health of the US economy. But the Democrats are saying that Republicans are cutting welfare measures.</p>

<p>According to Yahoo Finance, "These measures, Republicans say, would impose fiscal discipline on Washington that has been lacking in recent years. Meanwhile, critics say the plan would disproportionately place the responsibility for lowering the deficit on social programmes while skirting major cuts to politically popular programs like the Pentagon and veteran services that McCarthy has said will largely be spared."</p>

<p>On Sunday, Biden said that Republicans must budge from their 'extreme positions' and that agreement on these terms is not possible.</p>

<p>"It’s time for Republicans to accept that there is no bipartisan deal to be made solely&nbsp;on their partisan terms. Now it’s time for the other side to move from their extreme position," he said.</p>

<p>Whatever happens, raising the debt ceiling is the safest way to prevent the catastrophic ripple effect. The world looks on as US Congress debates.</p>

<p>You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form"><strong>here</strong></a>.</p>

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The United States is the largest economy in the world. The US Dollar is an unofficial global currency sought after by almost everyone. These two facts are enough to convince anyone of the pre-eminent position the country enjoys in all things money.

The United States is the largest economy in the world. The US Dollar is an unofficial global currency sought after by almost everyone. These two facts are enough to convince anyone of the pre-eminent position the country enjoys in all things money. Of course, things are more complicated than blanket statements, but in all discussions on the topic, the US invariably has a central position. So it follows that if the US economy just sneezes, the entire world gets a fever, and currently, the US is tottering on debt default due to the debt ceiling crisis. What is debt default? In simple words, debt default is the inability of a borrower to pay back the debt. Such a default may not cause massive problems if it is just a private individual defaulting. But if a country defaults on its debts, there is sure to be a ripple effect in the world. And if that country is the USA, then all bets are off on the future of the world economy or even its stability and existence. Watch | US Treasury Secretary warns country running out of cash × What is debt ceiling? The US has been running a fiscal deficit since 2001. This means that the income of the US government is less than its expenditure. To meet its expenses and commitments (like debt repayment), the US has to borrow money. Now there is a limit up to which the US government can borrow. This is called a debt ceiling. US Congress has the power to approve funds and budgets for the US government. The Congress approves the debt ceiling. If the government borrowings reach this limit, Congress takes a decision on raising the debt ceiling in accordance with the situation before the country. What will happen if the debt ceiling is not increased? The US will default on its debt if the debt ceiling is not raised. This means that it will not have money to pay off its loans. So what? This is not a situation where you are just delaying payments to a friend. In case the US defaults on its debts, it will mean that the richest, most powerful nation with all the might in the world is making an apologetic face and saying 'I can't pay off the loan, brother'. Since the world economy more or less revolves around the US, it is considered to be the safest economy to invest in. Nations and entities are more than eager to lend to the US as there is a near-100 per cent guarantee that the debt will be repaid in full with interest. US debt default would shatter this image. What happens if debt ceiling is breached or US defaults on debt? Disaster! The US economy would be very badly hit. Moody's Analytics has estimated that if the US breaches the debt limit for just a week, 1.5 million people will lose their jobs. And if debt default stretches well into the summer, US economic growth will sink, and 7.8 million jobs will vanish into thin air. Borrowing rates would rise quickly. A stock market nosedive would mean that USD 10 trillion in household wealth would be erased. And if the US economy goes down, those heavily invested in it (almost the entire world) will feel the heat in a manner most catastrophic. So by when the debt ceiling needs to be raised to avoid all this? In January, US Treasury Secretary Janet Yellen had said that government could pay its bill only through early June without increasing the limit. June is not too far away. So raise the debt ceiling! What's the holdup? The decision lies with the US Congress. And usual elements of a political fight between the Democratic Party and the Republican Party are on show here. The Biden administration and the Republicans are currently at an impasse. Proposals from one side are unacceptable to the other. In the month of April this year, Republicans in the House of Representatives passed a bill that will see the debt ceiling raised by USD 1.5 trillion or till March 31, 2014, whichever comes first. The House of Representatives is controlled by the Republicans. However, Republicans have also set several conditions which are so far unacceptable to Biden and Democrats. Republicans are arguing that the measures they've suggested are important for the health of the US economy. But the Democrats are saying that Republicans are cutting welfare measures. According to Yahoo Finance, "These measures, Republicans say, would impose fiscal discipline on Washington that has been lacking in recent years. Meanwhile, critics say the plan would disproportionately place the responsibility for lowering the deficit on social programmes while skirting major cuts to politically popular programs like the Pentagon and veteran services that McCarthy has said will largely be spared." On Sunday, Biden said that Republicans must budge from their 'extreme positions' and that agreement on these terms is not possible. "It’s time for Republicans to accept that there is no bipartisan deal to be made solely on their partisan terms. Now it’s time for the other side to move from their extreme position," he said. Whatever happens, raising the debt ceiling is the safest way to prevent the catastrophic ripple effect. The world looks on as US Congress debates. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Explained | US is 'running out of cash'. What is the debt ceiling crisis?

US Treasury Secretary Janet Yellen sounds the alarm bells. She warns that a failure to raise the government's debt ceiling could trigger an economic catastrophe.

Janet Yellen warns on U.S. debt default

debt-default

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