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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    What happens if America defaults on its "huge" debts, and how will Iraq be affected?

    Rocky
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    What happens if America defaults on its "huge" debts, and how will Iraq be affected? Empty What happens if America defaults on its "huge" debts, and how will Iraq be affected?

    Post by Rocky Tue 16 May 2023, 8:13 am

    [size=35][size=35]What happens if America defaults on its "huge" debts, and how will Iraq be affected?[/size]
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    Economy

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    2023-05-16 | 05:43
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    Alsumaria News - Economy

    The crisis of America's default on its debts is a global problem that threatens the international economy, as experts believe that if the United States of America defaults on paying its debts, this will have a severe impact on social life in the country, with the government's inability to pay the salaries of federal and military employees.


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    And US Treasury Secretary [url=https://www.alsumaria.tv/Entity/3801673947/%D8%AC%D8%A7%D9%86%D9%8A%D8%AA %D9%8A%D9%84%D9%8A%D9%86/ar/]Janet Yellen[/url] confirmed (Monday 15-5-2023) that it is unlikely that the ministry will fulfill all US government debt obligations by early June, which would lead to the US defaulting on payment for the first time in its history.



    What would happen if America defaulted on its $31.4 trillion debt?
    "The US government will face difficulty in paying all its bills on time after the first of next June, if Congress does not raise the US debt ceiling, and otherwise America and the world will face serious repercussions, including: First:

    Impact on the American economy and society
    - Hindering the government's ability to fund its operations, including the provision of funds for national defense or financing benefits such as Medicare or Social Security -
    Downgrading credit rating -
    Increasing borrowing costs for businesses and homeowners alike
    - Declining consumer confidence and boosting the economy To stagnation
    - To turn away from investments that promote economic growth
    - To destabilize.
    - 3 million jobs lost
    - The government's inability to pay federal and military employees, or pensions.

    Second: the impact on the position of the dollar
    - US default would cause a "global financial crisis" and would lead to an increase in the cost of borrowing and undermine the position of the dollar as an international reserve currency - the
    expected decline in the value of the dollar makes debts denominated in other currencies more expensive.
    - Pushing investors to sell US Treasury bonds and then weakening the US dollar.
    US Treasury bonds lost their advantage as a risk-free asset.
    The possibility of a 4% contraction in US GDP.
    - The collapse of the dollar will strengthen China's position as the largest competitor to the [url=https://www.alsumaria.tv/Entity/45068/%D8%A7%D9%84%D9%88%D9%84%D8%A7%D9%8A%D8%A7%D8%AA %D8%A7%D9%84%D9%85%D8%AA%D8%AD%D8%AF%D8%A9 %D8%A7%D9%84%D8%A3%D9%85%D8%B1%D9%8A%D9%83%D9%8A%D8%A9/ar/]United States[/url] for global influence, and will enhance the value of the Chinese yuan as one of the most important major currencies in the world.

    In addition, the US Treasury announced that [You must be registered and logged in to see this link.]'s possession of US bonds decreased for the second month in a row, to reach $39 billion.

    And the treasury stated in its latest schedule, that ““[You must be registered and logged in to see this link.]’s possession of US Treasury bonds for the month of March of the year 2023 decreased by 1.4 billion dollars, to reach 39.3 billion dollars, after it was 40.7 billion dollars during the previous month,” noting that “these bonds increased by 50 percent.” % for the same month of the year 2022, when [You must be registered and logged in to see this link.]'s possession of bonds amounted to 26.2 billion dollars.
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