Go to New York Times (www.nytimes.com) on Tuesday and find out the results of the discussion of a U.S. Government Shutdown. Read an article that explains what the government decided. In your comments write the title of the article you read and summarize the article.
The title: World Leaders Press the U.S. on Fiscal Crisis
ReplyDeleteThe government is trying to find a possibly positive end of the situation in the United States. Leaders of World Bank and International Monetary Fund have warned the United States. They believe the country must raise its debt ceiling and reopen its government or risk “massive disruption the world over.” Since the situation in the US could affect the rest of countries in the world like China and Saudi Arabia, the leaders of those countries had to come to US to sit down and talk.
The two parties as Democrats and Republicans didn't reach the agreement concerning about the US debt "sealing", the side effect spread through out the world...
"Markets ended last week with a burst of optimism, after House Republicans took the first steps toward a compromise. But that optimism faded over the weekend. On Sunday, with negotiations in the Senate stalled, the value of the dollar was sliding.
In the Asia-Pacific region early Monday, stock markets moved lower in Singapore, Taiwan and Australia. Markets in Hong Kong and Japan were shut for holidays."
Dollar became weaker, and it reflected on the economics of the rest of the world's countries as well as the world currency's rate.
Another statement from the article basically says that we could possibly face the default in the nearest future:
"Money market funds, the popular mutual funds that own large amounts of Treasury bills, have been selling those that are scheduled to pay out in late October and November.
Anshu Jain, the co-chief executive of Deutsche Bank, said on the international institute panel that his executive team had been trying to make contingency plans in case of a default, but it had struggled to come up with measures that would significantly stem the losses.
“You don’t want to go into all of it,” he said. “This would be a very rapidly spreading fatal disease."