Financing of the U.S.A Public Debt and Its Role in the Transformation of Global Financial Flows

This article provides an analysis of the manifestation of the public debt of the United States of America. If the debt ceiling is not increased, the American government will be prohibited from borrowing money. If there are no funds to repay loans, the US Treasury may take emergency measures: sell assets in the retirement accounts of its employees and suspend payments, use available funds to repay debts – by the end of August 2023, the Treasury had just under 2 trillion left. Theoretically, the Treasury can resort to the 14th Amendment to the US Constitution to start borrowing money without the participation of Congress, however, this can lead to litigation. In addition, such emergency measures can lead to a significant decrease in the prices of Treasury bonds, which will lead to an increase in their yields. This will also force the American government to increase the yield on its bonds, which in turn will worsen the debt crisis.