The U.S. debt crisis has shocked the global stock market

The U.S. debt crisis has shocked the global stock market. The government debt negotiations are in stalemate, and the global stock market fell on the 25th; the International Monetary Fund (IMF) even warned the United States that...

The U.S. debt crisis has rocked global stock markets. The government debt negotiations in Washington are at a stalemate, and global stock markets fell on the 25th. The International Monetary Fund (IMF) even warned that if the United States defaults on its bills, the global economy will be severely shocked. Policymakers around the world expressed hope and confidence that Washington will be able to break the deadlock. Whether Washington can reach a workable compromise has great stakes for Asian countries with nearly $3 trillion in U.S. national debt, and local policymakers and economists expect the White House and Congress to reach a last-minute deal to avoid triggering a crisis. In the face of the political deadlock in Washington, stock markets around the world fell across the board, and funds flocked to safe-haven gold and the Swiss franc. The short-lived stock market recovery triggered by Greece's second bailout ended, although there were no signs of panic in the market yet. However, the U.S. government may not be able to meet various payments in eight days. The White House and Congress are refusing to give in, making all walks of life at home and abroad increasingly nervous. The IMF urged the United States to raise the national debt ceiling quickly to avoid chaos in the U.S. economy and global financial markets. The IMF warned that the U.S. national debt will reach 99% of the total value of the U.S. economy this year and 103% next year. It urges Washington to adopt a three-pronged approach to maintain fiscal health by cutting spending, increasing taxes and tightening social security programs. The director of South Korea's central bank said that those in charge of foreign exchange deposit operations are the most nervous now, but no one thinks that Americans will seek their own death even though they have a solution. Germany, which has just drafted a bailout plan for Greece, also believes that Washington will raise the national debt ceiling in time. A spokesman for the German government said: "We have been closely following the national debt debate in the United States, and we remain confident that they will reach a compromise." Other countries were less optimistic and the conversation was much less polite. British Business Secretary Vince Cable declared: "The irony of the current situation is that the biggest threat to the global financial system comes from a few right-wing lunatics in the U.S. Congress, not the euro zone." Asians said that the problem in the United States is mainly political will, and it is not as complicated as the Greek crisis, which also requires finding financial resources for bailout. Xia Bin, an adviser to the People's Bank of China, declared: "They will definitely reach a compromise, so don't worry too much."