By selene financial,www.yahoo.com,southeast finance,Southern finance,yahoo finance,financial services company source Bloomberg headline U.S. debt to GDP: The $3 trillion figure is a misleading metric article By nancy danielle,[email protected] source Bloomberg article The U.K. government has set a $3.2 trillion U.k. debt ceiling and a U.N. Security Council resolution that calls for $1 trillion in emergency spending in the coming weeks to help the country avoid a “hard landing.”
The European Union, however, says the U.ks. government should have no authority to raise the ceiling or spend more.
In the event of a hard landing, Britain could default on its debt.
This could trigger a global financial crisis that would cripple markets around the world, including the U,S.
dollar and European stocks.
While the U-K.
has not reached the $1.5 trillion debt ceiling, its economy is showing signs of a slowdown.
It has seen inflation creep up to 4.7% in April and to 3.3% in May.
In addition, the British pound has plunged to its lowest level since November, while U.s.
Treasuries are trading at the lowest prices in more than two years.
A U.n. report said the U.-K.
is the world’s second-biggest economy with a GDP per capita of $33,094.
The IMF forecast a contraction of 0.7%, according to a Reuters poll of economists.