If Washington scraps the debt ceiling, the whole world benefits

AMERICANS travelling abroad may be surprised to find headlines screaming about the latest Washington scandal occupying the front pages of newspapers around the world.

That it's "all Trump, all the time" when it comes to the 24/7 media coverage of our global village, has less to do with the colourful figure occupying the White House. The main reason why the US political system fascinates the rest of the world is because when America sneezes, countries around the world can catch a cold.

Despite all the talk about its geo-strategic decline, the United States is the world's only remaining military superpower. The decisions that its president makes on issues of war and peace in this nuclear age determine the survival of America's allies and adversaries. And while pundits predict that China would replace the United States as the geo-economic hegemon, in reality America still dominates the global economy and sets its rules. Moreover, on one important level, the United States continues to serve as a safe haven for the accrued savings of individuals, companies and central banks around the world.