The Federal Budget

Global markets have been relatively calm in the midst of the political standoff in Washington as investment managers have been assigning a small probability of default, but this is a very dangerous game as it has repercussions both within and outside the U.S.

Other than an image problem, political polarization and gridlock at the Federal government level are a problem of great concern (...) However, the U.S. will not lose its image, mainly because below the surface a lot is going on that will continue to attract investment to this country.

[A U.S. debt default would] affect Chile as a triple whammy: increased interest rates, decreased copper prices and a fall in world economic activity.