What happens if America defaults on its debt?

The American constitution vests legislative power in Congress. Over the coming days the political body may arrogate to itself a metaphysical power: transforming the utterly unthinkable into hard reality. By in time, Congress could drive the country into its in modern history. A collapse in stockmarkets, a surge in unemployment, panic throughout the global economy—all are firmly within the realm of possibility.How this would happen is . America has until roughly June 1st to raise its debt limit—a politically determined ceiling on total gross federal borrowing, currently $31.4trn—or it will run out of cash to cover all its obligations, from military salaries to sending cheques to pensioners and making bond payments.