Economists: US default will pull the whole world to the bottom

The consequences of the default in the US will affect not only the economy of the country, but the whole world. This was stated by American economists.

“No sector of the global economy will survive if the US government defaults and the crisis is not resolved quickly,” said Mark Zandi, chief economist at Moody’s Analytics, in his words. transmits “Reedus”. Eswar Prasad of the Brookings Institution also said that a debt default would have dramatic consequences for US and global financial markets. Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics, added that if the safety of Treasury bills were to be undermined for any reason, it would send shock waves through the financial system and have huge implications for global growth.

Earlier, Treasury Secretary Janet Yellen said that the United States is close to economic default. She stressed that she would notify about this within two weeks. US President Joe Biden said a default would be devastating to the US economy. Economist Maxim Chirkov, in an interview with URA.RU, predicted a crisis worse than in 2008 due to the US decision. He noted that the way out could be the lifting of sanctions against all countries.