US Treasury Secretary Warns of Loss of International Credibility if Debt is Not Paid

US Treasury Secretary Janet Yellen said at a congressional hearing that a US debt default would lead to a loss of confidence on the part of international partners and serious economic damage to the country.

“A debt default will lead to a loss of confidence in the United States as the safest country economically, as well as a reserve currency,” Yellen said.

“Such a scenario would cause serious economic damage to the state,” she added.

Russian economist Mikhail Belyaev said on March 16 that with the growth of public debt and the lack of sufficient momentum for the development of the economy in the United States, there is a high probability of a default that will affect many countries.

He urged Bank of America CEO Brian Moynihan to prepare for the possibility that the US could default on government debt, which could lead to instability not only in the US but around the world.

Source: Gazeta.ru