US debt ceiling: an ill financial wind is blowing Australia’s way | Greg Jericho
by Greg Jericho from on (#5QDSD)
America still holds enormous sway on the global economy. So when Congress starts down a path to a possible debt default, could it hit the world with GFC 2.0?
As Australia attempts to tip-toe out of the chilling waters of Covid and into the warmth of recovery, the United States threatens to send cold winds our way. But fortunately fears of stagflation inherited from America are more often predicted than realised.
Despite the growth of China, one would have to be a fool to deny the hold America still has on the global economy. Its economy remains around a third bigger than China's and is more than four times the size of the third largest economy in the world of Japan.
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