Suspense Crime Sach Ka Dam
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There is a danger of being declared a defaulter against America, which is called a superpower in the world. President Joe Biden’s Democratic Party and opposition Republicans are at loggerheads over raising the debt limit. In such a situation, experts are warning that if America defaults in the situation of tension between the two sides, then it will prove dangerous for the whole world.
The US exceeded the debt limit on 19 January. Since then the US Treasury has taken several steps to avoid default, but to no avail. If this situation continues, then America will become a defaulter who will not be able to repay the loan installments on time in the calculation week itself i.e. till June.
How likely is the US to default?
Lawrence J. White, professor of economics at New York University’s Stern School of Business, told Al Jazeera that there was nothing anyone could do about the issue, as it was becoming a political issue. He said, ‘I hope that some solution will be found. But for reconciliation one side has to bow down. If neither side is ready to bow down, then a dangerous situation will arise.
America will suffer huge losses due to default
Even if the US defaults in the coming days, the economy will take a hit. Pro. ‘The world will end up saying it doesn’t trust the US Treasury as much as it used to,’ says White. The world will no longer take its responsibility towards the US Treasury as seriously as it used to. The Treasury has to issue bonds to finance it. The amount received will have to be returned along with interest. Pro. White says that if the US defaults, Treasury bill and bond interest rates will also rise. This will also increase the tax burden on the American people.
