What a debt default could mean for America’s superpower status
In case you haven’t heard, the United States is in the middle of a perilous debt-ceiling showdown. Congress needs to expand the amount of money the US can legally borrow, but Republicans and the Biden White House can’t agree on the terms.
That is pushing America closer and closer to the date of default, which means America won’t be able to pay its bills. That would, as you’ve also probably heard, cause economic pandemonium in the United States, but also abroad, potentially triggering a global financial crisis and recession.
Sounds bad — because it is. The US political dysfunction...