If you are in the Financial Industry or a serious trader, you would have come across the term US debt ceiling. The debt ceiling is a legislative limit on the amount of national debt that can be incurred by the US Treasury. (source)
The parliament will need the majority vote to raise the debt ceiling, from March 1962-Oct2021 the debt ceiling was raised 86 times(source) and of which 10 shutdowns were recorded when the house couldn't come to an agreement. (source)
The current debt ceiling was temporarily raised to 28.9trillion USD(US Debt Clock), the temporarily raise would push back the dateline to 3 Dec 2021. "Senate Republican Leader Mitch McConnell wrote to President Biden on Friday that he would not work with Democrats on another debt limit increase."(quoted from Reuters)
US Treasury Secretary Janet Yellen said on Thursday, 7Oct2021 that having the debt ceiling has become increasingly damaging to the United States. (source)
That brings to two possibilities I could think of:
I know this may sound crazy, but it is possible.
It took President Nixon 2 days to1971 to abandon the Gold Standards. (source)
If this really happens, I believe US Dollar will "skyrocket" against most currencies. If you have investment, commitment or business that transact using US Dollar, you will need a financial strategist to help you out with this.
Take Action before the Official Announcement.
This article first appeared on Forex100 Academy
