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What A U.S. Debt Default Would Mean For The Global Economy
Wednesday, October 9, 2013 14:13
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A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before. If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations. A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented. And that would just be for starters DETAILS HERE
Although a default could be the straw that broke the camel’s back in collapsing the global economy, the cause is Socialism, lack of fiscal responsibility, sovereign debt, and derivatives. It will happen whether we elect to add Trillions more to our debt or not. The longer it is delayed and the more debt that is incurred by the US and other governments, the more apocalyptic will be the collapse. Had we manned up and took the hit 5 years ago instead of propping up the deck of cards even firther, we would probably be working our way out of the quagmire already and on our way to recovery.