By JOE McDONALD
Associated Press
BEIJING – America’s debt crisis and economic malaise are shaking confidence in its global leadership.
Many governments see Washington’s paralysis as political theater ahead of a presidential election and wonder how American hardliners can be allowed to hold up a deal and bring a globalized economy to the brink.
International bankers are concerned that a U.S. default would cause a crash of the dollar, the world’s reserve currency, battering economies from Asia to Africa and possibly sparking political unrest. Already, U.S. trade partners are worried about depending too heavily on one country and looking to diversify, just as China is expanding into Latin America and other markets historically dominated by the U.S.