Skip to Navigation

Amitava Chattopadhyay


Amitava Chattopadhyay
Emerging Market Multinationals - Amitava Chattopadhyay


A not so obvious but significant consequence of the US government failing to reach an agreement on debt ceiling!

The US government could not come to an agreement leading to a shutdown in many non-essential services, including the processing of passports and visas! Indeed, if by October 17th there is no agreement, things get worse and the US government could default on debt payment.

This has huge potential consequences that may not be obvious at first glance. One key advantage that the US currently enjoys is that the US$ is the reserve currency of choice. This confers benefits to the tune of US$100 billion to the US government and its citizens in terms of lowered borrowing costs.

This may not disappear with a debt default as currently there is no other currency available to fill the reserve currency shoes. However, it is likely to lead to a speedier erosion of the might of the US$ as a reserve currency and thus a quicker increase in the cost of debt for the US government and its consumers.

  Oct 1, 2013 | Musings




THEMES

 
 
 


SHARE

 

Thoughts?

 



Recent Tweets



Wed, 18 Dec @ 05:57 am

#PetulantTrump doesn't like hearing the truth that he's nothing but a crook and discovering he's not got dictatoria… https://t.co/2wXA8evhog

via Twitter for Android
Fri, 06 Dec @ 12:47 pm

Without clarity, this is awful. @PMOIndia what are you doing? "Hyderabad case: Police kill suspects in rape and mur… https://t.co/8ZlsTQsvPK

via Twitter for Android
Fri, 06 Dec @ 08:12 am

Very suspicious. Who are they covering up for? "Hyderabad case: Police kill suspects in Indian vet's rape and murde… https://t.co/udJnvLGKYG

via Twitter for Android
Thu, 05 Dec @ 08:21 am

If there isn't swift justice, India should stop calling itself a civilized nation. "Unnao: India woman set on fire… https://t.co/v32VMv6vzP

via Twitter for Android
Wed, 04 Dec @ 12:18 pm

Oh, good. Stupid people will exit the gene pool. "Wearing helmet is now optional in Gujarat cities" https://t.co/DACkFzY6rz

via Twitter for Android
Tue, 03 Dec @ 12:02 pm

Ooh! @realDonaldTrump who is a #FakePresident and unbearably #nasty is wondering why Macron is dishing it back! Wel… https://t.co/1uz7wzVDbu

via Twitter for Android

  Close About Papers Cases Books Teaching Musings Media Gallery Ask Amitava