2011/07/20/1215/link


 * link: URL::http://www.cfr.org/us-strategy-and-politics/default-would-dim-american-power/p25486
 * title: title::Default Would Dim American Power
 * author: author:::James M. Lindsay author::Maurice R. Greenberg
 * date: when posted::2011-07-15]
 * source: organization::Council on Foreign Relations
 * summary: summary::A sustained default could undercut American power in four ways. The first and perhaps most certain would be to force cuts in defense spending. Second, a default would make it harder for Washington to negotiate agreements or build alliances with other countries. Third, a debt default would erode American credibility. Finally, a default could help China, Russia and other major buyers of U.S. debt accomplish something they have been trying to do for years: find an alternative investment to U.S. Treasurys.
 * topics: topic::2011 US debt ceiling topic::American imperialism topic::US/mil