Non traditional threat to US Essay

In my opinion the most clever Non-traditional threat to the US is the economy. It is the single most grand, globalized, and un-accounted for problem in the US. The on-going problem is so bad that the US economy is days past from a (partial) nonpayment. This would be the first default since possibly the 1700s at the founding of the nation. The problem with this is the US green back is the reserve property of the world (all or most investments are made in US dollars). If the US defaults it entrust cause a ripple effect that will make the 2008 global financial crisis look small in compare to the lobal catastrophe that will occur.The reason most investments are in US dollars is because dollars have historically been the most stable currency in the modern-day age. The US defaulting on its debts has both internal and external effects. The total of US disposal debt is over $ 16. 9 trillion. (US Debt Clock) Of that debt, $ 4. 8 trillion is owned by governmental agencies. This includ es agencies such as the social security (holds over $2. 5 trillion dollars). Of the public debt, foreign investors own $5. 7 trillion. Keep in mind this is however the actual government debt effects of a default would be uch bigger.The US reached its debt ceiling in 2012. The US constitution fourteenth Amendment, Section 4 directly forbids the government from defaulting on its debt. Thus to carry on with the debt ceiling being reached the government has been taking extraordinary measures in coif to pay their debts (for instance suspending investments on individual pension funds). When these measures are exhausted, the government will not bring on a global stinting collapse as they default on all their bonds. They will Just be forced to balance the economy to match their spending with their quiet revenue.This is a very different issue (still with its problems) to a full default. What is important is that a full default is likely to not happen. The brinksmanship between the ro gue Republicans and the government would only threaten a technical default on the shortest-dated US government bonds, because their shorter lives mean their maturity date is nearer than the succor of the governments safe assets. The problem here, as ever, is not whether the federal government is able to repay the principle from these bonds, but the short-term methods apply to make these repayments.The US treasury would still be seen as a safe investment, albeit in more economically uncertain times, and thitherfore bonds would probably rise in price believe it or not, the US government 10-year bond decreased in price after intelligence operation that the media reported a default was unlikely. Though we are quick to forget, there have been 17 government shutdowns between 1976-1996 and the debt ceiling is raised close every year a full default never happens. This brinksmanship is historically common, and it is the media and politicians that fuel the political fire by indicating that this is the year where it will default.