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U.S. Default Could Supercharge These Stocks and Spook Allies

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Heard on the Street: A default would almost certainly be very painful for Americans. There would also be major consequences abroad.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.Heard on the Street

America’s unquestioned financial might isn’t the only thing in danger if the debt ceiling standoff causes a defaultAs Democrats and Republicans debate raising the debt ceiling, they both agree that a default would be disastrous for the economy. But how? WSJ explains why U.S. debt has become the center of the economy. Photo Illustration: Madeline Marshall—when it won’t be able to pay its bills.

 

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