The US debt and how defaulting will change the world The obvious
answer is…Everything will change and the USA will never have the
same image again A default would have some “pretty serious
ramifications” for the US economy and, because the US is still
20 per cent of world GDP, it would be terrible for a lot of
other countries as well. With Europe in the middle of a huge
crisis the knock on effect could be disastrous. The UK is
struggling along with many other nations but the biggest economy
in the world hitting the wall again….Disaster or just longer
pain? We will see higher interest rates and potential
destabilization in financial markets, higher taxes, lower
incomes, less money in the economy, market crashes, job losses,
families suffering and much much more. The question is what will
happen to the relationships with the creditors that the US
government owes so much to. China, Saudi Arabia and others are
owed trillions of dollars by the American government. What will
happen if the debts and interest are not