With just days left before the United States faces a potential debt default on June 5, internal conflict among lawmakers has shaken public confidence in the nation’s financial stability.
Washington grapples with severe political divisions, soaring inflation, and overarching financial instability, exacerbating the economic strain.
Economists like Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, and Li Daokui, director of the Academic Center for Chinese Economic Practice and Thinking at Tsinghua University, shed light on why the U.S. debt crisis holds significant implications for the global economy.
According to Sachs, a default could trigger a cascade of financial disruptions worldwide, affecting markets, trade, and international relations.
Li Daokui emphasizes that global investors view U.S. debt as a cornerstone of international finance, and any instability could undermine trust and economic cooperation on a global scale.
As the U.S. approaches this critical juncture, the ripple effects are poised to influence economic policies and financial structures worldwide.
Reference(s):
cgtn.com
