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PR Newswire
05-03-2023, 02:55 PM
Realistically, there is not sufficient countries to recall their debt on USA.
However if US cannot continue its deficit spending ways, the prescribed IMF will kick in which is austerity. USA will have to cut its social spending and military spending. This means its USA citizens will have less spending power and globally, the gulf nations, EU countries, Japan, South Korea, Philippines will have to increase their defence budget. The latter 3 are more fiscally conservative, hence they will balance their budget by imposing higher taxes on their citizens, thus affecting their consumption
However if US cannot continue its deficit spending ways, the prescribed IMF will kick in which is austerity. USA will have to cut its social spending and military spending. This means its USA citizens will have less spending power and globally, the gulf nations, EU countries, Japan, South Korea, Philippines will have to increase their defence budget. The latter 3 are more fiscally conservative, hence they will balance their budget by imposing higher taxes on their citizens, thus affecting their consumption