2min chapter

Fareed Zakaria GPS cover image

U.S. border crisis; Britain's plan to ban migrants on boats; how America’s debt ceiling crisis looks abroad; Syria back in Arab League

Fareed Zakaria GPS

CHAPTER

The US's Default on Debt Will Be a Catastrophe

The ramifications are difficult to note, says Martin Wolf. US Treacheries will have to be downgraded as a result of the default. It's the one asset people hold that is no longer safe and they want to get rid of it. And therefore, its price will fall, which automatically means interest rates will rise. The biggest issue is concern, is the blow to confidence.

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