The United States is threatened with imminent default.
(Photo: AP)
Washington, Dusseldorf The situation is serious: The dispute over the US debt ceiling has now escalated so much that President Joe Biden is even considering canceling his participation in the G7 summit in Japan next week. Because at the beginning of the week, leading US congressmen will meet with Biden for negotiations – time is short, but a compromise seems far away.
Investors and international partners are looking nervously at the USA, because the world’s largest economy may only have weeks before it defaults. A sovereign default could plunge the American economy into recession while destabilizing the bond-based global financial system.
What is at stake in the event of an insolvency? What do the Democrats want, what do the Republicans want? And is the debt ceiling a sensible instrument at all? The most important questions and answers.
1. What happens in the event of a payment default?
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Further
Read on now
Get access to this and every other article in the
web and in our app.
Further