Isn’t the condition in US deteriorating day by day? Though they have managed to bail themselves out of the immediate crisis, the troubles seem to be not ending with S&P recently degrading US of her AAA status to AA+.
What this means is that the investors would now be in a position to bargain when investing in US Treasury bonds, which were before this incident considered to be one of the safest propositions in the market. Now, the US would be forced to pay a higher interest on these bonds, which in turn would affect their debt position further and in turn the unemployment rate which doesn’t seem to go down with time.
This also might trigger a backlash in outsourcing with uproar going louder on jobs in US being outsourced to India and in turn might have an impact on India and her citizens who are living in US.
But do US have options left in her kitty to deal with the thunder storm arising due to ever rising borrowing limit and debt situation? For that matter do European nations and in fact the whole World have some solution for the same, as this is not going to be just a local effect. It is going to effect the entire globe and the consequences seem really bad.
Source for Image: http://www.nodebtusa.com/