Part 6/8:
Despite the daunting figures and the spiraling expenses, it is important to note that the US is unlikely to face a sudden default. This is mainly because the US government borrows in its own currency and holds significant advantages, such as being the issuer of the world’s reserve currency.
However, if confidence wanes in the US's ability to manage its long-term fiscal situation, investors could demand higher yields on government bonds, further pushing up borrowing costs and worsening the debt scenario.