Oct 14, 2013 04:09 PM

Ungovernable America


The U.S. government shutdown reflects irreconcilable differences among different group of the population. Even if some stopgap measures are soon adopted to reopen the government, the cause of the shutdown will not be addressed. 

There is a significant risk that the U.S. Congress may not raise the debt limit and the U.S. government will default on its debt. If the United States does default, the global economy is likely to fall back into recession due to the resulting financial turmoil. The most likely scenario is for a temporary solution that would allow the government to continue to service its debt for another year. However, unless some sort of solution is reached to reconcile the differences between the left and the right, sooner or later the U.S. government will default.

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