Indusplateau
If US defaults, do you think there will be layoffs in india?
What are you guys doing to over come the risk of US default?
18mo ago
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Curated from across
What are you guys doing to over come the risk of US default?
It’s actually complex you are connecting country’s debt to economic recession / downturn. Currently, there are too many confounding variables e.g sticky inflation, supply chain constraints, interest rate hikes, currency war B/w BRICS and West To break it down a bit based on simple economics
Thats a great second order thinking
A reserve currency never defaults... They can print more money, live with inflation rather than default. Plus the lender would allow it, because there is no better party to give debt to, instead of US. Other developed countries don't borrow as much as US
If US defaults, there will be a huge economic crisis across the world. Layoffs would've happened way earlier just with the signs of US defaulting
There will be layoffs. But rest assured that people holding USD (investors) will move to safer currencies such as INR or Yuan and the values of these will go up relative to other currencies. These investors will then plough their money in some form in India and China depending on opportunities. They won't invest in US. So, it's both good and bad.
