Economist Alexander Nazarov warned of the repercussions of a US default, noting that it would affect the global economy as a whole.
The expert cited the words of US President Joe Biden, who indicated that if the United States falters, the entire world will face problems and the US economy will slide into recession.
Nazarov commented on this, saying: “It seems that neither side (Democrats and Republicans) will give up, which promises us a hot summer.”
He noted that the cost of insuring against default on US government debt exceeded the cost of Greek government debt.
And yesterday, US President Joe Biden warned that the US default would generate difficulties and problems affecting all parts of the world, and he said during his attendance at a forum in New York: “If we default on paying our debts, the whole world will face problems.”
Last January, the US Treasury notified Congress to start applying “extraordinary measures” as a result of the rise in the debt ceiling, which reached $31.381 trillion.
And US Treasury Secretary Janet Yellen warned that the government will not be able to continue to meet all its obligations, by June 1, 2023, if a decision is not taken on the debt ceiling.
Source: RT
