How the rest of the world’s economy would be affected if the U.S. defaults on its debts


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If the debt crisis roiling Washington were eventually to send the United States crashing into recession, its economy would hardly sink alone. The repercussions of a first-ever default on the federal debt would quickly reverberate around the world. "No corner of the global economy will be spared" if the U.S. government defaulted and the crisis weren't resolved quickly, said Mark Zandi, chief economist at Moody's Analytics. Zandi and two colleagues at Moody's have concluded that even if the debt limit were breached for no more than week, the U.S. economy would weaken so much, so fast, as to wipe out...