US
US shutdown two days from global disaster say experts
US shutdown two days from global disaster
As the United States budget battle continues to wage on without any sort of compromise in sight, many citizens are now bracing for the unprecedented economic impact that a debt default will have on American society.
A debt default could not come at a worse time, as consumers and retailers alike begin gearing up for the upcoming holiday shopping season. In a country which has already seen so much turmoil rising from the budget crisis, many people are expressing fear over what else may be in store for them.
As members from both parties are starting to realize how much of an impact that shutting down the government has had on American families, a race against time has now ensued in order to reach a compromise on the debt ceiling. If politicians are unable to reach an agreement, the United States government will default on their debts in just a few days, causing a devastating impact on the stock markets, which will inevitably mark the beginning of a new American recession.
As countries around the world are beginning to question the steadfastness of the American government, families in the United States are struggling to get by.
Still, President Obama also sounds optimistic.
“My hope is that a spirit of cooperation will move us forward over the next few hours,” he said while volunteering at a soup kitchen. Although he also added a swipe at Republicans saying if they don’t set aside partisan concerns “we stand a good chance of defaulting”.
CommSec’s chief economist Craig James believes markets are also showing signs of optimism.
“They can do it the easy way or the hard way. The easy way is to conclude over the next day, the hard way is to push into default and push turmoil into markets.
“If [talks] do get successfully concluded its positive for global economic growth and commodity producers like Australia. If we have the other side and the unthinkable happened it would be a sign of short-term dislocation … That would really force [politicians] hand,” he said.
Do you think the debt ceiling will be raised before the deadline?
According to estimates, the $30 billion in the coffers is expected to last until sometime between October 22 and November 1, after which time the government will have to start prioritising payments – deciding which bills to pay and which to leave – or default on some of its debt obligations.
On The Web:
US shutdown two days from global disaster
http://www.independent.co.uk/news/world/americas/us-budget-battle-imfs-christine-lagarde-warns-americas-lawmakers-they-risk-pushing-world-into-recession-8877239.html
US Government shutdown: Two days from economic disaster
http://www.heraldsun.com.au/business/markets/us-government-shutdown-two-days-from-economic-disaster/story-fni0d7jd-1226740166628
Reports: US shutdown two days from global disaster
http:///business/markets/us-government-shutdown-two-days-from-economic-disaster/story–1226740166628