Both White House and Moody's analyses paint a disturbing picture of what could have happen if the debt ceiling in't increased. Welfare and other federal government payments could be "endangered," with the basic functioning of the government such as maintaining defense, national parks, and other public areas at risk. Additionally, the US healthcare system, which is already stretched after battling COVID-19 for two years, would struggle to function adequately.

Furthermore, real GDP could decline by 4%, the dollar would weaken, and the stock market could tank, wiping $15 trillion off US household wealth. Six million Americans could have been made jobless, rates for credit cards, loans, and mortgages could have spiked, and the country would likely have fallen into a deep recession. The resulting ripple effect could last for years as financial markets would lose faith in the US, with the country's credit rating downgraded long-term.

So is America headed for economic meltdown? Watch this space.

Now take a look at America's boomtowns today

What is America's debt ceiling, and why does it matter?