S&P said that the US refusal to raise the debt ceiling will be comparable with the 2008 crisis

If the US debt ceiling is not raised soon, it will lead to more serious consequences than the fall of Lehman Brothers, which marked the transition to the global financial crisis of 2008, said CNBC chief economist at rating Agency S&P Global Ratings Beth Ann Bovino.

According to her, if raising the upper limit of government debt is agreed upon in Congress, the government will stop working, and the economy will suffer. Bovino added that the United States will lose about $6.5 billion every week.

She noted that this can lead to less economic activity and fewer jobs. In addition, it will affect the stock market could «significantly harm the economy as a whole.»

CNBC notes that the statutory debt limit, the U.S. government exceeded a few months ago. However, the Finance Ministry took advantage of close maneuvering, so the government lost funding.

The Minister of Finance Steven Mnuchin appointed 29 September is the deadline for establishing a limit on the debt. The U.S. Congress will consider this issue after the 4th of September.

The official US debt limit has exceeded in the end of 2012, then several times updated. The last time the limit came into force on 15 March 2017. Now the size of the US debt is $of 19.84 trillion, 0.03 trillion exceeds the limit, the newspaper notes.

In February 2017, the US President Donald trump said that during the first month of his presidency the national debt of the United States decreased by $12 billion, while in the first month of the presidency of Barack Obama the national debt has increased by $200 billion.




S&P said that the US refusal to raise the debt ceiling will be comparable with the 2008 crisis 02.09.2017

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Сентябрь 2nd, 2017 by
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