Alarm, Pessimism Surround U.S. National Debt

Washington, Jul 14 (Prensa Latina) A national debt payment default would weaken the economy, increase the deficit, and affect confidence, and would be a very negative thing, said Ben Bernanke, chairman of the U.S. Federal Reserve, highlighting increasing concern and pessimism about this issue.

On Thursday, the U.S. government was 19 days away from a default situation if Congress does not raise the debt ceiling.

Signs of alarm were not just in the White House.

The Fed chairman warned of possible risks, saying he feared that various types of interest may well increase to the extent that the government’s creditors lose confidence in the U.S. capacity or willingness to pay its debts.

The debt controversy between the White House and Democrats on one side and Republicans on the other is not over, and U.S. citizens hope a new national debt limit is set before Aug. 2, the deadline


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