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The proposed move by India, if effectuated, will dynamite the world of global finance and destabilise global economies.

Why the US debt crisis will hit us all

August 1, 2011

The government is on daily wages.

No. That is not a cynical comment by a political commentator on the Indian government. It is a factual interpretation of the state of affairs about the United States government.

The reason for the same is benumbing as much as baffling -- we are actually facing the once unthinkable prospect of the US defaulting on its debt obligations.

Naturally, this prospect raises fundamental questions. How could the world's sole superpower run the risk of defaulting on its debt obligations?

Is the US government heavily dependent on debt to fund its deficits? Why? And if so, what is its external component?

Swiss banks, thanks to their legal mandate for maintaining secrecy, have gained a notorious reputation over the years in favouring politically exposed persons (PEPs) to deposit their loot in such banks.

Now, the good news is that Switzerland is 'poised to become an example of one of the most forward-leaning countries in the quest to return stolen assets to developing countries'.

The Swiss Parliament, it may be noted, passed a new law in February 2011. Termed as the Restitution of Illicit Assets Act (RIAA), this law has the potency to make and mar the reputation of several PEPs across continents.

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