Zafar who is also head of the Institute for Economic Research and Development Pakistan says U.S. to go bankrupt if it would have broad impact. This is because the U.S. dollar is used as an international currency.
Conditions in the U.S. today is precarious. The government of President Barack Obama is trying to raise the budget ceiling of their debt is fixed at the position of 14.3 billion U.S. dollars since last May.
But Republicans rejected this plan. If no progress until Aug. 2, the possibility of U.S. debt will mature and if unable to pay the mortgage and the principal, the U.S. economy will be judged as failing to pay off alias 'default'.
"Impasse debt budget negotiations between Republican and Democrats could bring the U.S. into the abyss of bankruptcy," said Zafar. He said economic issues are very important for the survival of the U.S. economy.