Friday, 23 December 2016

How likely is a bankruptcy of America? (Part 5)

A bankruptcy on US government debt is a serious threat to the economies of the world, but we do not have to be afraid of it any time soon. Now lenders are more concerned not so much of the size of public debt, as an  America's capability to service it. However, the difficulty can appear only in the event if one of the largest holders of US bonds will start to gradually get rid of them. This trend is already defined, but its pace is not sufficient for a soon detection of the debt crisis. In addition, the US dollar is right to retain the status of a "reserve currency" and get rid of this status would not be far-sighted decision amid world uncertainty.




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