What a USA Default Would Mean For Pensions, China, and Social Security

"What would happen if Congress doesn't raise the debt ceiling and the U.S. defaults on its debt later this month? The broad economic implications are unpredictable, but a default could cause huge trouble for the global economy."

"But whatever happens to a the global economy, one thing is clear: People all over the world who have loaned the U.S. government money won't get paid on time."

"And lots and lots of people have loaned the government money. Those people are commonly referred to as owners of Treasury bonds. When you buy a bond, you are lending the government money, on the assumption that you will get your money back, plus interest, on time."