What it would mean for the global economy if the US defaults on its debt
The Associated Press
WASHINGTON (AP) – If the debt crisis roiling Washington were eventually to send the United States crashing into recession, America’s economy would hardly sink alone. The repercussions of a first-ever default on the federal debt would quickly reverberate around the world.
Orders for Chinese factories that sell electronics to the United States could dry up. Swiss investors who own U.S. Treasurys would suffer losses. Sri Lankan companies could no longer deploy dollars as an alternative to their own dodgy currency.
Moody’s Analytics has concluded that even if the debt limit were breached for no more than week, the U.S. economy would weaken so much, so fast, as to wipe out 1.5 million jobs.
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5/22/2023 4:05:35 PM (GMT -5:00)