In view of the escalating budget dispute in the U.S. economists are increasingly worried about the economic consequences. Should Democrats and Republicans in Washington to 17 October not to agree to raise the debt ceiling, the U.S. threatened insolvency. This could have catastrophic consequences for the world economy itself, experts warn.
The reason is that many companies depend on government contracts in the United States. “The state would then have to cancel their expenses dramatically and that would have a sharp recession in the largest economy in the world to follow,” said Allianz chief economist Michael Heise the Frankfurter Rundschau. “And as for the engine of the global economy would fail, would have global impact quickly,” warned Heise. “Around the globe, the company would scale back their investments radical.”
Germany also would be affected to a considerable extent, fears Heise. Thus, German companies exported last year alone goods and services worth over 87 billion euros in the United States.
Degussa’s chief economist Thorsten Polleit further points out another danger: “Should it emerge that the U.S. can no longer service their debt, which would probably trigger an unprecedented Shockwave on the financial markets,” said the Polleit Fri. The current situation leads very clearly just how dangerous it is that in the U.S. the state had as much impact on the economy. The economists at MM Warburg even fear that it could lead to a new global financial crisis.
Obama does not want to pay “ransom”
According to the U.S. Treasury, the cash balances of the Government on 17October exhausted. Currently, the government’s debt ceiling is 16.7 trillion dollars. If the government no new debt is allowed, it must not spend more than it earns. In the last twelve months revenues covered only 80 percent of expenditures.
Since last Tuesday in the U.S. are already large parts of the federal silent because Congress does not on a budget for the first Fiscal year began in October 2014 failed to agree. 800 000 public servants were sent to forced unpaid leave, authorities and ministries to work on the back burner. According to calculations of Commerzbank every week stoppage is likely to weigh the economic growth in the U.S. in the fourth quarter by 0.2 percentage points.
U.S. President Barack Obama on Saturday appealed to the opposition Republicans: “Stop this farce. Put an end to the shutdown. “He will not let itself be blackmailed Obama said. “I will certainly not pay ransom for raising the debt limit,” he added. The Republikanerführer John Boehner said, “This is not a fucking game.”
The Conservatives want to approve a new budget only if the introduction of the core pieces of the health reform moves. However, Obama rejects changes from strictly important parts of the reform became effective on 1st October in force. Secretary of State John Kerry described the crisis as “a moment of political folly.” (With afp / dpa)