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https://theconversation.com/us-debt-default-could-trigger-dollars-collapse-and-severely-erode-americas-political-and-economic-might-198395>
"It’s a case of déjà vu all over again on the debt ceiling debate.
Republicans, who regained control of the House of Representatives in November
2022, are threatening to not allow an increase in the debt limit unless they
get unspecified spending cuts in return. In so doing, they risk pushing the
U.S. government into default.
Brinkmanship over the debt ceiling has become a regular ritual – it happened
under the Clinton administration in 1995, then again with Barack Obama as
president in 2011, and more recently in 2021.
As an economist, I know that defaulting on the national debt would have
real-life consequences. Even the threat of pushing the U.S. into default has an
economic impact. In August 2021, the mere prospect of a potential default led
to an unprecedented downgrade of the the nation’s credit rating, hurting
America’s financial prestige as well as countless individuals, including
retirees.
And that was caused by the mere specter of default. An actual default would be
far more damaging."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
