STORY: U.S. debt-ceiling saga a political theatre-in-the-round: Turkish expert
DATELINE: June 11, 2023
LENGTH: 00:01:55
LOCATION: ISTANBUL, Türkiye
CATEGORY: POLITICS

SHOTLIST:
1. various of views in the U.S.
2. SOUNDBITE 1 (Turkish): SANT MANUKYAN, Analyst with Is Yatirim, the investment banking arm of Isbank Group in Istanbul
3. various of views in the U.S.
4. SOUNDBITE 2 (Turkish): SANT MANUKYAN, Analyst with Is Yatirim, the investment banking arm of Isbank Group in Istanbul

STORYLINE:

The latest U.S. debt-ceiling saga is nothing but a political theatre-in-the-round, revealing the deficiency of the country's two-party system, said a Turkish analyst.

U.S. President Joe Biden signed the Fiscal Responsibility Act of 2023 into law a week ago to avoid a historic default on government debt.

The bipartisan act suspends the public debt limit through Jan. 1, 2025 and increases the limit to the actual debt level on Jan. 2, 2025.

Since 1945, the United States has raised its debt ceiling 103 times.

SOUNDBITE 1 (Turkish): SANT MANUKYAN, Analyst with Is Yatirim, the investment banking arm of Isbank Group in Istanbul
"I regard this as a political theatre-in-the-round. Whoever is in power accuses the opposition of running the country into the ground. If you look at the opposition, they accuse the government of irresponsible or inefficient spending.
But of course, since it is a two-party system, everyone knows that the other side will be in the same situation after one or two terms. There is a quarrel until the last moment, but in the end, common sense prevails, and somehow they come to an agreement.
The main risk of default here would be a collapse of the collateral market, which would, in turn, affect the real sector and bring the global economy to a standstill."

Meanwhile, Manukyan stressed that due to the dollar's hegemony in global markets, the slightest fluctuation in the U.S. economy has a massive impact, especially on developing countries.

SOUNDBITE 2 (Turkish): SANT MANUKYAN, Analyst with Is Yatirim, the investment banking arm of Isbank Group in Istanbul
"When any country keeps the money of these developing countries in its pocket or invests in their bonds, it also takes a financial risk. Unless you eliminate this, the dollar will continue its hegemony."

Xinhua News Agency correspondents reporting from Istanbul, Türkiye.
(XHTV)