TEG Working Group News Roundup May 5-12
Mon, 05/22/2023 – 14:40
This week, economists warn about the fallout of defaulting on US debts, the Biden Administration reframes US-China economic rhetoric, M1A1 Abrams tanks arrive in Germany to train Ukrainian forces, and General Paul Nakasone may soon step down from his role leading the NSA and USCYBERCOM.
Industrial Policy & International Security
US debt ceiling debacle adds to economists’ fears of turmoil | Financial Times
The United States is nearing its debt ceiling, but Democrats and Republicans have not been able to agree on raising the $31.4 trillion limit. Interim measures to bypass the restriction will expire on June 1st. Whether the US government decides to default on payments or spend in defiance of the ceiling, it faces political, financial, and economic turmoil. The US faced a similar challenge in 2011 and though a resolution was ultimately reached, government debt was downgraded from a AAA rating, which caused stock prices to plummet by more than 5 percent in one day. Experts caution that a US default, even if it is corrected quickly, may result in up to two million jobs lost and a sharp recession comparable to the global financial crisis over …read more
Source:: Hoover Institution