Know The Ways In Which Us Financial Crisis Adversely Impacts Global Economy

November 2, 2013 8:40 am 2 comments

Photo by epSos.de

The fact remains that the euro crisis is no longer the center of attention. Rather, the concern has witnessed a drastic shift towards the issue pertaining to US financial standoff. It certainly will not be an erroneous claim to make US political gridlock is considered to be the greatest threats to world economies worldwide. An annual autumn meeting will be held between Wolfgang Schäuble and President Jens Weidmann. The burning hot topic that will be discussed is the present financial turmoil that US is presently suffering.

Hold Adverse Effect

In the meeting held, it was clearly brought to light the fact that the continued uncertainties that the US market faces are doing least benefit to the overall global scenario. The debt ceiling is also not doing any sort of benefit to the international market, as well. According to Christin Lagarde, the government shutdown has indeed caused an adverse impact on the governmental agencies existing in US. Also, it was made clear that if the government is not successful in its continued effort to increasing legal debt ceiling, the situation would truly become worse.

Raise Necessary Amount

Unable to facilitate a high government borrowing limit will certainly hold a further negative impact on the economy of America. The urgency of the situation can always be understood by coming to terms with the vital piece of information that US debt limit is presently at not less than seventeen trillion dollars. You need to realize the truth that if the amount is not raised on time there remains every possibility that the economy will go bankrupt. Also, the matter seems to be further disheartening in realizing the truth that US borrows an amount of two billion dollars as compared to the amount it earns from different sources.

Few Major Consequences

Have you even made an effort to learn as to what might be the effects of financial US standoff? Well! The consequences are enough to make you understand the negatives that remain associated along with US financial standoff. Some of the ways in which US financial standoff can make a significant impact on the overall scenario include; international market collapsing and the dollar going into free fall, as well. You also must understand that US government bonds can experience a major dip in their attractiveness, as well.

Aspect Of Junk Bonds

One of the other consequences of US financial standoff is that the rating agencies might have to downgrade credit rating. It will also no longer be possible to use US government bonds as a deposit at the US Federal Reserve. However, it needs to be understood that Federal Reserve is already accepting junk bonds as a part of the unconventional monetary policy. There remains least doubt about the truth that such a situation can indeed prove to be a lot problematic for pension funds.

One of the other ways in which US financial standoff holds a detrimental effect on the global economy is that the same holds severe detrimental effects on price stability, as well. The same can also hold an effect on the prospect of the country in the industry pertaining to exports. It is important to wait to let the cheap money end as soon as possible; else the global and financial crisis can flare up easily.

Author Bio: I, Marie, love spending most of time learning about binary options. The link http://www.best-binaryoptionsbroker.com/ has helped me in acquired the desired kind of knowledge.

Leave a Reply


Trackbacks

Other News

  • Christian Persecution World Russia Declares ‘Holy War’ On Islamic State

    Russia Declares ‘Holy War’ On Islamic State

    The Orthodox Christian Church, which is reclaiming its traditional role in post-Soviet Russia, has just described its government’s fight against the Islamic State and other jihadi groups in Syria as a “holy war.”

    According to Vsevolod Chaplin, head of the Church’s Public Affairs Department,

    The fight with terrorism is a holy battle and today our country is perhaps the most active force in the world fighting it. The Russian Federation has made a responsible decision on the use of armed forces to defend the People of Syria from the sorrows caused by the arbitrariness of terrorists. Christians are suffering in the region with the kidnapping of clerics and the destruction of churches. Muslims are suffering no less.

    This is not a pretext to justify intervention in Syria.

    Read more →
  • 2nd Amendment Faith Oregon Shooting – When Tragedy Happens Let’s Focus On The Cause And Not The Tools Used

    Oregon Shooting – When Tragedy Happens Let’s Focus On The Cause And Not The Tools Used

    While the blood was still dripping from those martyrs who, in front of an evil man armed with a gun, asked them if they were Christians and those strong in the faith said they were. He shot them in the head. While those who were lost or weak said nothing he spared their lives and shot them in their legs.

    Barrack Hussein Obama angrily ran to the cameras to use this opportunity to say that guns being in the hands of the law-abiding Americans is the problem, and we need to restrict the 2nd amendment to spare the lives of “we the people.”

    This is nuts; guns do not kill people, people kill people! You can test this fact in your own home right now. (Do not worry no one will get hurt).

    Read more →
  • 2nd Amendment Faith Gun Free Zones Are Killing Zones

    Gun Free Zones Are Killing Zones

    How did you feel when you heard of the shootings in Oregon this week? Was the first thing that came to your mind the thought that if we only had stricter gun control legislation, this kind of tragedy could have been prevented?

    If you listened to idiotic liberals, like President Barack “Insane” Obama, you might believe that. It is my contention that liberalism is a mental disorder based on the rejection of God and His principles, and extreme irresponsibility.

    Read more →
  • National Where’s the Beef, in Republican candidates, in 2015?

    Where’s the Beef, in Republican candidates, in 2015?

    What type of Republican Leader do you want in 2015?

    As we look at elections coming up quickly in 2015, as well as the very important 2016 election cycle, what type of “Republican” leaders do you want to shape the future of your county and country?

    Do you ever wonder why it is that the current crop of Republicans are not declaring, at every media interview, “These ills have been brought to you by the Democrat Party!” when speaking of Obamacare, the hordes of immigrants being allowed to destroy our country, the Iranian nuclear treaty, the “Black Lives Matter” racial division rhetoric, the attack on the defense of marriage, the 94 million Americans not currently in the work force,

    Read more →
  • National Child protection services Sentences Baby To Death ON 9/11/2015

    Child protection services Sentences Baby To Death ON 9/11/2015

    Child protection services should be self-explanatory based on the simplicity of its name. But they are doing exactly opposite of their name in many places. Wynne, Arkansas is one such place.

    A baby has been sentenced to death and will be executed on Friday, September 11, 2015 and Arkansas Department of HUMAN SERVICES (DHS) – Division of Children and Family Services- Central Office will facilitate the delivery of the baby’s 10-year-old to the abortion clinic.

    On August 29, 2015 20-year-old Justin Smith was arrested and charged with three counts of rape and one count of endangering the welfare of a minor. His “alleged” victim is a 10-year-old.

    Read more →