As US negotiations over its debt ceiling heat up, experts say there could be significant consequences for Australia. Find out more:
The US has never defaulted on its debt, so we'd be in uncharted territory.
"It's like setting off a nuclear weapon against the economy. It will be a depressant on the world economy at the same time as it explodes the US economy," he said.AMP chief economist Shane Oliver says defaulting would force Washington to slash spending by 7 per cent of GDP, which would likely plunge the US into recession. That would have knock-on effects for Australians, he said.
"We have seen this movie before; [there's] lots of panic, lots of noise, everyone's saying no deal. Then at the last minute, you get some sort of agreement," he said.But Mr Wolpe fears a new generation of hardline Republicans with significant political power risks pushing the US towards the cliff., had threatened to shoot down the party's proposal unless their demands were met.
While most Republicans fear the impacts of a default, the rebel wing has a more reckless outlook, he warned. Although the Republicans may be blamed in the short-term for causing the crisis, Mr Wolpe believes they may have political incentives.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia news LIVE: US President cancels trip to Australia; support for Voice tumblesSpeaking at Tweed Heads in northern NSW, Prime Minister Anthony Albanese confirmed the Quad meeting in Sydney will not go ahead as planned. Follow our live blog here:
Read more »
President Biden to cancel Australia tripIt is reported US President Joe Biden will not travel to Australia next week after the G7 in Japan and will instead return to the United States. The President is said to be returning to deal with domestic issues related to the debt ceiling.
Read more »
Joe Biden postpones planned trip to Australia due to US debt ceiling crisisThe White House says US President Joe Biden has postponed his planned trip to Australia and will return home after the G7 in Japan because of stalled domestic debt ceiling negotiations.
Read more »
Joe Biden cancels visit to AustraliaAnthony Albanese's office confirmed US President Joe Biden has cancelled his visit to Australia next week as the debt ceiling crisis continues to threaten the United States government.
Read more »
Joe Biden has cancelled his Australia visit over the US debt ceiling crisisWashington and Canberra officials have confirmed US President Joe Biden won't visit Australia and Papua New Guinea after the G7 meeting in Japan.
Read more »