Nilanjan Banik

Nilanjan Banik

Professor, Mahindra University, India. Ph.d. in Economics from Utah State University, USA, and a Master of Economics from Delhi School of Economics, India.
  • Articles: 0

US Hit the Debt Ceiling: Rising Alarm to Budget Deficit

The US hit the debt ceiling of $31.4 trillion on January 19 and as early as June 1, the US government may run out of money to pay its bills if Congress does not raise or suspend the debt ceiling. US treasury secretary Janet Yellen reaffirmed that defaulting on the US debt obligation would be a “catastrophe” and would put into question Washington’s “global economic leadership”. The debt ceiling refers to the maximum amount of money the government can borrow to meet its financial obligations.

The US Dollar’s Enduring Strength: Separating Fact from Fiction

Recently, numerous articles have been written on the demise of the dollar. The argument is that China, the second largest economy after the US, is increasingly convincing the world’s largest suppliers of energy, including Russia, Saudi Arabia, Iran, and Venezuela, to trade in Chinese yuan. This, according to the commentators, will usher in the demise of the ‘petrodollar’. It would then be a matter of time before the US economy crumbles, they argue.

The Collapse of SVB: The Story of Systematic and Unsystematic Risk

And the story goes on like this. This bank, named Silicon Valley Bank (SVB), lent money to the tech industries and start-ups, primarily in the tech domain. On 10th March 2023, the news broke that this bank collapsed and did not have enough funds to pay back to its depositors. SVB was the biggest US lender to fail since the 2008 global financial crisis.

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