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Up to global catastrophe two weeks. A U.S. default may lead to new financial crisis
Material posted: Publication date: 04-10-2013

Another confrontation between Democrats and Republicans in the US may lead to new global financial crisis, perhaps even stronger than in 2008. The reason, of course, will not just temporarily unemployed, the government, and a technical default in the event that if, by 17 October the Congress will raise the debt ceiling.

"If no compromise with the debt ceiling will lead to default, this could cause a catastrophic effect. Credit markets frozen, the dollar will depreciate and U.S. interest rates will rise", – is spoken in the report of the U.S. Treasury. Will suffer not only financial experts: will slow down the process of creating new jobs, lower consumer activity. The damage to the economy will be felt for several decades and painful effect on both ordinary Americans and on the business, the experts of the Department. According to some experts, America is facing the most serious economic downturn since the great depression. And the recession in the largest economy of the planet is inevitable and will negatively impact on all others.

So far only Americans suffer. The shutdown of the U.S. government on October 1 on the global economy is not affected, according to the Russian experts. The situation is certainly uncomfortable, but for us lawmakers familiar. In the country's history this has happened 17 times. In particular, in the mid-1990s, when the President was bill Clinton, the government was inactive for a month. However, this month (mid December to mid January) coincided with the Christmas and new year holidays.

Although economy in the USA market and work with government agencies not directly connected, the shutdown in any case promises very tangible loss, the magnitude of which will depend on how long government stalemate. Civil servants sent on indefinite unpaid leave, will receive less money (if at all), hence, their purchasing power will decrease. It is also possible the growth of unemployment.

According to German Die Welt, due to the budget dispute could be severely delayed the start of a mission to Mars called MAVEN. The launch of the project at a cost of $650 million was planned for November – December 2013. Good for next launch "window" will have to wait until 2016.

American farmers don't get access to the index of prices for pork and cattle for fattening from CME Group, the largest futures exchange in the USA, reports Financial Times. But in the poor towns of Alabama was closed the programme for the support of kindergartens for children from impoverished families.

Recall that the United States once again faced with the need to raise the debt ceiling, set currently at $16.7 trillion. And once again the Republicans have used this situation to force President Obama and the government to make concessions, chief of which is the cancellation, postponement or reduction of funding of the main brainchild of the President – health care reform. Obama flatly refuses, noting that the reform law was passed three years ago and his action cannot be discussed. Before the start of the new fiscal year – October 1 to reach a compromise failed, and the US was announced "shutdown" – a temporary, partial suspension of work of the state apparatus. Approximately 800 thousand state employees were sent on unpaid leave indefinitely.



Tags: assessment , USA , crisis

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