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3 thoughts on “kundan jewelry wholesale What is the impact on the United States on debt defaults on the United States?”
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wholesale bridal jewelry nyc The impact of debt defaults on the United States is:
1, the depreciation of the US dollar
The dollars in currency with a more stable currency value because investors abandon the U.S. dollar, and the US dollar will usher in a large number of selling. Generally speaking, the euro is considered a possible alternative currency. But the euro area is currently in a debt crisis. So this explains why the price of gold has set a record, exceeding the resistance of $ 1,600.
This funds are not important to invest in gold or Canadian or Swiss Frang. Once the debt defaults, the US dollar will depreciate most of the major currencies. Consumers in the United States will pay for almost all imported products -from toys to gasoline -pay greater costs.
2. Interest rates increase
Once the title of "default country" is crowned, the United States will lose its special 3A rating. In the future, the United States will be forced to pay a higher premium for debt borrowing. At present, the federal government has expected the expenditure of this fiscal year to be $ 1.5 trillion, which means that the United States will be forced to rely on deficit finance in the foreseeable future. The cost of obtaining loans and paying interest will rise sharply.
wholesale custom jewelry box packaging factories The US debt crisis is basically why the United States owes so much debt?
It because the U.S. government purchases toxic assets (about 1.4 trillion) during the subprime crisis, what to buy? The US dollar issued, but so many dollars will cause malignant inflation in the market, so the issuance of 1.4 trillion U.S. bonds will recover liquidity. (In this way, the bank is rescued, and it will not inflation, suppress the US dollar, so that the competitiveness of the US exports will be strengthened --- to save the manufacturing industry and reduce the unemployment rate)
In from this logic, the U.S. government speaks too much. Money, and spend money in the future, so the source of money is found:
1. Issuing US dollars-this is the origin of two quantitative loose
2.
It now it seems that the government tends to be the second type (the Federal Reserve's third quantitative easing agreed).
If breach of contract:
Once the breach of contract, the US debt will devalue sharply, leading to a large number of U.S. bonds in various debt countries.
1. Either continue to print the US dollar repurchase --- that is the sharp depreciation of the US dollar, the domestic inflation has intensified, the US economy collapses, and the US dollar is no longer an international leading currency.
2, either relying on accounts. As a result, capitals from all over the world evaporated, countless government bad debts, and depreciation of currencies in various countries. The sharp appreciation of the US dollar will also collapse in the US domestic economy.
Pymaticing that 2 is basically impossible.
soul stacks jewelry co wholesale Debt default is to borrow money without paying money. The serious thing is that no one borrows money to the US government again. The US government cannot maintain normal government financial expenditure.