Part 6/10:
Positive Outcomes
In a scenario where the U.S. maintains a favorable view among investors, several outcomes might emerge:
Continued Investment: The U.S. assets may still be viewed as relatively secure, drawing in investments despite default signals.
Government Stimulus: A crisis could pave the way for significant fiscal stimulus, compensating for economic decline.
Competitive Exports: A weaker dollar could bolster U.S. exports, facilitating recovery.
Increased Domestic Investment: High-interest rates may prompt internal shifts toward government bonds, depending on efficient governmental management.
Negative Outcomes
Conversely, should the U.S. be perceived as a potential basket case, detrimental outcomes could ensue: