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http://english.aljazeera.net
Debt and default The world seems to be sinking in a sea of debt. In the US, Washington is battling over $14tn worth of debt. If a political deal is not reached in the next two weeks, the world's biggest economy will have to default. Ratings agency Moody's is deciding to review America's triple-A rating, with a possible downgrade, hitting the dollar and sending gold to a new record high. Across Europe default is also a concern. The national debt of Italy - Europe's third biggest economy - now stands at $4tn. Servicing that will require $576bn by the end of the year. Also European finance ministers met again in Brussels to talk about another bailout for Greece. The second package of loans to Athens is expected to be worth around $176bn. And in Ireland, where Moody's actually cut the country's debt rating to junk status, there are warnings that a second bailout may be needed. But the European Commission has criticised the downgrade, saying Ireland is returning to growth.
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