With the vast cloud of political uncertainty and ambiguity hanging over the U.S., it’s not much of a surprise that the economic market is steadily and continuously sees and experience the aftereffects of the weakening dollar.
The internal strife between the Democrats and the Republican was anchored over the characteristics of a school playground argument. It looks as if the arguing parties have lost sight of the bigger scope of things specifically the globally perceived debt value of the United States which is at high risk of long-term security against short-term political gains.
Currency which to a much lesser extent equity markets has something to do with the attributable cause in the US government shutdown have not fully taken into an account the prospect of the United States hitting hard in its debt ceiling. This is by far the biggest concern for the present markets as the near ceiling breach would indefinitely cause the country to default on its debt which was already considered to be among other issues.
We could expect to see debt-rating agencies which will either warn the downgrading or in actual sense cut their ratings. Either way, both outcomes would raise the underlying cost of borrowing for the United States with an existing debt of $16.7 trillion, even increasing rates by a small fraction of a per cent would in a real sense still eat up a hefty sum of amount.
Finally, it is widely anticipated that the United States will not be haphazard to jump into making hasty decisions and risk taking the bait of a swift economic bailout. Instead they would better end up cutting their noses off to spite their faces which politicians have a knack of a reputation for.