Economy: USA at risk of losing the country’s Prestigious Triple A credit rating

Le 01 août 2011 par IvoireBusiness - Ivory Coast President Alassane Ouattara is scheduled to talk with U.S. President Barack Obama on

July 29, 2011. It has been reported that Ouattara told reporters at the United Nations located in New York City that he will appeal in Washington for support from the World Bank, and the International Monetary Fund.

Unfortunately, Ouattara is visiting the USA at a time when it faces the possibility of running out of money to pay its bills. August 2, 2011 is the deadline for the “Debt Ceiling” to be raised. According to the Congressional Research Service, the “Debt Ceiling” is approximately about 14.294 Trillion, and that is huge bills that must be paid. The “Debt Ceiling” must be increased soon or else there will be major damage done to the United States economy. The USA is still trying to recover from a recession that economists say began in 2007, and ended in 2009. Since 1974 Congress has controlled exactly how the USA government Tax, and Spend money.

Congress is divided over how to raise the “Debt Ceiling”. Economists warn that there could be a serious impact of a US debt default. It is believed that failure to reach a deal on the “Debt Ceiling” could spark chaos in the Global Markets. “The impact of a US default would be severe not just for the GCC, but for the stability of the Global Economy. There would be severe ramifications for the Dollar, interest rates and institutions holding US assets” said Simon Williams, Chief economist at HSBC Middle East recently on gulfnews.com.

Adina Queen Le Gare, queenlegare@hotmail.com