How US Defaulting On Its Payments Could Shake The World

Sign of the times: A message outside the Lincoln Memorial which has closed due to the government shutdown. Economists are more concerned about a possible U.S. default later this month

Will Budget Deadlock Trigger Global Financial Armageddon? How US Defaulting On Its Payments Could Shake The World -- Daily Mail

* U.S. government shutdown lingers on as Congress fails to agree budget
* Fears grow that infighting will prevent agreement on raising the debt level
* America is expected to reach its legal debt limit of $16.7trn on October 17
* Economist says default 'would be Lehman Brothers to power of thousand'

World stock markets began to shake today in response to a U.S. government shutdown that shows no signs of ending soon - and could pave the way for a much more devastating default.

Investors have generally taken the view that the first such shutdown in 17 years would prove temporary, but there are growing worries about its implications for talks on raising the U.S. public debt ceiling later this month.

While the shutdown would have to drag on to have a substantial effect on the United States economy, a failure to raise the debt ceiling carries the threat of a government default on its debt with wide and unpredictable consequences.

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My Comment: From my vantage point .... the U.S. is already facing generational bankruptcy .... the only question that needs to be answered is when will it be made official.