Deep disagreement in US makes default conceivable: Financial Times

LONDON -- The depth of disagreement in the United States and so in Congress has made a voluntary default by the world's most important country possible, said an opinion piece in Financial Times on Tuesday.

The default could happen for two reasons, said Martin Wolf, chief economics commentator at the Financial Times. One reason is that the Republicans and the Democrats are far apart, while the other reason is that key participants lack the incentive to compromise, he said.

Wolf cited Michael Strain from the conservative American Enterprise Institute in the article, saying "Foreign leaders and global investors would look at the U.S. and see a damning portrait."

Wolf said the threat of a default would continue as long as the divisions continue, and even if both parties reached a temporary agreement, the threat would return soon.