What Would Happen if USA Stopped Paying its Debt?

Currently the US has a debt of approximately $21 trillion. The country’s debt has spiraled from $350 billion 50 years ago, reaching its first trillion in the early 1980's. Its massive debt is unsustainable, posing the troublesome question: What would happen if it was to default on its debt?

Economic stimulus packages, government bailouts and exorbitant military expenditures have contributed to the country’s skyrocketing debt. Defaulting would lead to plunging world markets, massive increases in unemployment, and crippling recession. There would be a significant decline in social security and government payrolls. Rising interest rates for consumer purchasing, including loans and mortgages and rising prices would ensue.

Foreign nations currently hold 32% of US debt, with China and Japan holding 50% of foreign debt. In 2015 Greece defaulted on a $2.7 billion dollar payment, and the net worth of the average Greek household fell by of 40%. Is this on the horizon for US households as well? Watch the video, to learn more information.