Financial Armageddon Threatening World

America now, has never been more serious, on the verge of the abyss of failure to pay debts. And, if that happens, the financial crisis sweeping the world again that, unlike three years ago, magnitudnya so described as very large financial Armageddon.

Former U.S. Treasury Secretary at the same time Obama's former economic adviser, Larry Summers in an interview with CNBC on Wednesday (20.07.11), as quoted Huffingtonpost.com, said that if America fails to pay the debt, chances are it is very open, its impact will be worse than financial crisis three years ago.



"This will be an asteroid that hit Earth causing financial Armageddon," Summers said as she went she was not sure Americans have the capacity to restore the financial system, which destroyed it, to the starting position.

America is a nation, perhaps the only, the ranking of debts, diberika by all rating agencies, AAA in simple language can be interpreted very safe and can not fail to pay.

Rating was downgraded to threatened, the worst position, failed to pay if to August 2, 2011, that means less than two weeks from now, this country can not pay the debt that is due.

How? Yes, it's because the U.S. debt limit allowed congress worth U.S. $ 14.3 trillion is fixed. Obama can no longer owe to, among other things, to pay maturing debt and other programs.

So, the Obama administration needs congressional approval to raise the upper limit on the debt. The process of negotiations between Democrats with Republicans, more than a political rather than technical economic considerations alone, it was not smooth.

America's central bank, the Fed, was forced to make worst-case scenario to face the possibility of default is that according to the institute unimaginable consequences if it occurs.

Then, whether the world will be affected, just as the crisis three years ago, have to worry about a possible failure of Obama and Congress agree? The answer: plenty of reasons to worry.