The real challenge and issue:
The US Debt default that is looming ever larger with each passing day that the US Congress, Senate and White House seem to treat as a brinkmanship fatigue challenge will have a specific default structure or process attached to it, that the rest of the world needs to get to grips with very quickly.
What are the consequences:
Because, if Americans are willing to engage in quasi-negotiations with each other on this acrimonious level; then world beware, they will treat you with even more disdain and petulance than they have been treating each other.
This is commercial war on a scale we have not experienced for quite some time.
And the most disparaging part of this process or potential risk is that no commentator has yet stood up and called time on this challenge or at the very least attempted to pull the veil from the threat and fall-out the rest of the world will experience.
Of course 17 October 2013 is a technical default breach days only; because as most business people who experienced bankruptcy will attest to is the fact that you can continue to trade (on the goodwill of your creditors) beyond the point of being solvent, so long as those creditors continue to good-naturedly extend some further credit or payment terms to you.
- The Myth that U.S. Has Never Defaulted On Its Debt (ritholtz.com)
- VIDEO: Fed’s Williams: U.S. Debt Default Would Be ‘very, Very Dangerous’ (marketcurator.com)
- 12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy (thesurvivalplaceblog.com)
- Shutdown bad; default crazy… and catastrophic for the economy (prairieweather.typepad.com)
- Hope? Shutdown/debt talks but no resolution yet (bigstory.ap.org)
- “Risky Business”: Corporate Leaders Bemoan Tea Party Default Crisis Created By Their Own Donations (mykeystrokes.com)
- White House Rejects Latest House GOP Proposal to End Shutdown, Avoid Default (ktla.com)
- Obama says defaulting on bills ‘dramatically worse’ than shutdown (abc.net.au)
- The U.S. Has Repeatedly Defaulted: It’s a Myth that the U.S. Has Never Defaulted On Its Debt (rinf.com)
- The default has already begun (blogs.reuters.com)