Expert Discusses Potential Consequences of U.S. Default

The U.S. Department of Treasury admits that it will be unable to pay debts starting June 1. This was reported by rg.ru.

Valery Emelyanov, an expert from BCS World of Investments, spoke with "Rossiskaya Gazeta" about the possible repercussions of a U.S. default.

"The situation is unusual for other countries, but it's typical for America. The Federal Reserve has money in private banks, but they are not allowed to lend to the Treasury without Congress's signature," the expert stated.

"During a default, residents of the United States won't have to go through the nightmare that Russians faced in 1998, but there will still be consequences," he concluded.