A U.S. Debt Default Would Be Rare for a Western Economy

Jason Ippolito
A U.S. Debt Default Would Be Rare for a Western Economy (Bloomberg)

Not since 1933, when Germany unilaterally decided to renege on debt, has a western power pulled the plug on what it owed. Yet, President Obama’s administration and House Republicans are still at loggerheads about raising the country’s looming debt ceiling. Should the deadline for borrowing authority on Oct. 17 come to pass, without at least a stopgap measure, it could “bring the $5 trillion market in Treasury-backed loans to a halt,” according to Bloomberg.com.  And that could mark the beginning of a worldwide war on market stability.  Let’s hope not.

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