Tag: US Debt Crisis

Washington’s Domestic Turmoil Could Jeopardise its Position as a World Leader
Analysis, Featured, North America, World

Washington’s Domestic Turmoil Could Jeopardise its Position as a World Leader

According to financial experts, a debt default by the US would spell chaos for both the American and global economies. The U.S. dollar, whose dominance over the world's monetary system has provided the country with exceptional benefits for decades, now has a chink in its armour due to the debt crisis. According to economists at Goldman Sachs, a debt ceiling breach would immediately halt one-tenth of U.S. economic activity. A declining dollar could make debts in other currencies comparatively more expensive and threaten to push some emerging economies into debt crises. Allies and enemies of the United States are probably perplexed by the drama around the federal debt ceiling and wondering how serious Washington is about being the world's leader. President Joe Biden was forced to pos...