Thread by @nelsonepega

1/14 - 🚨WHAT HAPPENS IF THE US DEFAULTS⁉️

A default on the US debt ceiling would have profound implications. This historic event could trigger economic shocks and disrupt global financial stability. Let’s talk about it!#DebtCeilingDefault #GlobalFinancialStability

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History teaches us that financial crises can affect military readiness and operations. A default could hamper US strategic alliances, similar to the effects of the Great Depression. #HistoricalLessons #MilitaryReadiness

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A default could also jeopardize trust in US Treasury bonds, a cornerstone of the global economy. The result? Skyrocketing interest rates and a weakened dollar. #TrustInBonds #DebtCeiling

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Higher interest rates could have sweeping effects across various sectors. In real estate, borrowing costs could increase, making mortgages more expensive and potentially curtailing property demand. #HigherInterestRates #RealEstate

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Business operations would also feel the pressure. Higher borrowing costs increase the cost of capital, making business investments and expansions pricier, potentially stunting economic growth and job creation. #BusinessImpact #InterestRates

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Consumers could face challenges as well. Higher rates would increase the cost of credit cards, auto loans, and personal loans, reducing disposable income and potentially dampening consumer confidence. #ConsumerImpact #DebtCeilingDefault

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Government borrowing costs would surge due to higher interest rates. Servicing existing debt becomes more expensive, potentially diverting funds from other government programs, impacting sectors like defense, infrastructure, and social services. #GovernmentDebt… twitter.com/i/web/status/1…

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In summary, a surge in interest rates following a debt ceiling default would have wide-reaching impacts across the economy. Such an event could slow down growth, discourage investments, and create financial hurdles for individuals, businesses, and governments.… twitter.com/i/web/status/1…

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Transitions like the Multidomain Operations (MDO) might be heavily compromised due to a default. Reduced funding for R&D and training could undermine US strategic dominance and give adversaries the upper hand. #MDO #StrategicDominance

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In the cyber world, the implications could be dramatic. Budget cuts may create intelligence gaps, lead to policy errors, and compromise the ability of the US Cyber Command to develop and deploy advanced weapons. #CyberSecurity #USCyberCommand

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The ripple effect would also hit the defense industry hard. Diminished defense spending could stunt technological advancement and hamper military hardware production. The capacity for capability regeneration may take a severe hit. #DefenseIndustry #TechnologicalInnovation

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Collective security within NATO could suffer a major blow. This could potentially weaken the alliance, compromise cyber defense capabilities, and raise operational hurdles. #NATO #CollectiveSecurity

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In essence, a debt ceiling default would have far-reaching implications. Economies, military readiness, alliances, and overall stability would be at risk. Proactive policies and learning from history are crucial in navigating these challenging times. #DebtCeiling… twitter.com/i/web/status/1…

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Preventing a debt ceiling default and ensuring financial stability is crucial to mitigate these consequences. Effective fiscal management and prudent debt management are pivotal for maintaining economic resilience. #FiscalManagement #DebtCeilingDeal

Join us tonight at 8:30pm EST for a discussion on The Debt Ceiling Deal twitter.com/i/spaces/1vAGR…