The United States is facing the prospect of defaulting on trillions of dollars worth of loans, unless the Republicans and Democrats strike a deal to legally allow the US Department of Treasury to incur more debt, which would allow it to pay its bills.
US Treasury officials say that, unless a deal is reached, the US risks running out of money to pay its debts as soon as June 1, and this could trigger a recession, sparking fears of a global economic and financial crisis.
Here's what it means, where current negotiations stand, and how it could affect Australia.
