The disastrous consequences of an averted default in the US will be long discussed in mass media. Although the issue is resolved, some sources continue to search for and publish articles devoted to the problem. Let us imagine what would have happened if the US faced a default.
While some countries are experiencing grave economic problems, the US may just consider its actions in case of such a situation. Although the US government managed to avoid a default, analysts continue to think over the issue. In particular, economist Scott MacDonald has assumed what consequences the US dollar may face in case of a default.
“A sovereign default caused by a lack of political will as opposed to capacity to pay would certainly fuel the momentum to dollar dethronement. With that would come the end of Washington’s ability to endlessly print money in the form of U.S. Treasuries and other securities,” the economist summed up.
Scott MacDonald supposes that not only the national currency but all the US citizens were on the verge of tough times. What is more, the country’s position in the global arena could also be shaken. “One of the big worries related to a potential default is that such an event would give further momentum to the dethronement of the US dollar as the world’s major reserve currency,” he said. “China, Russia, South Africa, and several other countries have already begun to conduct part of their trade in other currencies,” Scott MacDonald pointed out.
