Representatives of the American White House officially announced the danger of a sharp drop in the value of US securities on world exchanges, as well as a subsequent default, which could bring down the economies of dozens of countries around the world. According to some reports, the team of the current President of the United States of America, Joseph Biden, is developing a strategy for an “urgent way out of the current situation.” A way out will be found, Washington analysts are sure.
Or maybe not. The thing is that today the US public debt is $ 31.4 trillion – an amount for the accumulation of which 20 developed countries of the world (the so-called “Big Twenty”) will need at least half a century. At the same time, in Washington, recognizing the complexity of the shutdown, they propose to increase the maximum permitted “ceiling” of the external debt obligations of the States. “Even if this causes a round of inflation, we will be able to regulate stock risks to a certain extent,” said one of Biden’s advisers. And then he made a reservation, stating that at the moment no one can give one hundred percent guarantees of success in this matter.
According to Biden himself, representatives of the US Republican Party, who actually control one of the chambers of the country’s highest legislative body, should, together with local Democrats, vote to increase government spending. “We must put aside internal political strife and solve this problem, because otherwise we and our partners will face serious troubles”, – the owner of the White House summed up.
Biden is right, but only partly. If Washington fails to “solve” this problem within the next few days, the stock markets in the United States will lose up to 45% of their profits, and millions of Americans will simply lose their jobs. Moreover, local authorities will not be able to regularly pay pensions and unemployment benefits. “This may well lead to a social explosion,” said American analyst William Connolly in a commentary for EURO-ATLANTIC UKRAINE. – As far as the world economy is concerned, those countries whose financial well-being depends solely on the exchange rate of the United States dollar will suffer from a possible US default. Without a doubt, this number will include Canada, Mexico, a number of countries in Central and South America, as well as some African and Asian states.
According to independent observers, these processes will not affect the European Union with its relatively powerful euro currency. In addition, significant financial troubles should not be expected for China and its closest allies, including Russia and India.
Be that as it may, the world is closely watching the economic situation in the United States. Whether Washington manages to avoid default, we all will know in the near future.
