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Will the United States default on its debt? | ticker VIEWS

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Across the United States and around the world – markets, business leaders, financial institutions, governments, citizens – are anxiously monitoring the question of whether the United States will default on its $28.43 trillion debt that it is carrying today

The United States has never, ever defaulted on its debt.

The political leaders in both parties have never let that happen.  Until possibly right now.

Australia, to its credit, abolished the statutory debt limit in 2013 and does not face this crisis management issue. 

The US statutory debt limit – the amount of money the United States Government can finance – has been raised over the decades by law and is today at $28.4 trillion.  That ceiling was broken in July. 

The United States Treasury is undertaking “extraordinary measures” to manage the inflow and payment of funds

Money coming in from tax receipts and going out in interest and other payments due, to keep the daily aggregate debt under that statutory ceiling.

But those measures will be exhausted on or near October 18.  When that happens, the United States will no longer be authorised by law to pay its creditors. 

It is like your credit card reaching its limit – you can’t buy anything further on it.  You need a higher credit ceiling from your card’s issuer to keep spending.  Good luck!

This is why Congress needs to raise the existing debt limit.

While it sounds simple, it is immensely, intensely, fraught with the rudest, most confrontational politics. 

If you are a Democratic president of the United States, and you need to raise the debt limit, your political opponents, who want you exorcised out of office, will call you irresponsible, radical and guilty of fiscal recklessness – and no, we will not give you the votes in Congress to raise the debt limit.

The debt limit has been raised some 80 of times since 1917 – generally on a bipartisan basis. It was raised three times under President Trump.  But under President Obama, and now under President Biden, Republicans in Congress are refusing to vote in any way, shape or form to raise the debt limit.  

Every responsible economist believes that a default by the United States on its debt will have catastrophic consequences

This includes the possibility of market crashes and recessions in the US and in countries around the world. In the United States, the ability of the government to make cash payments and to continue programs like Social Security and child care and veterans support, could be sharply curtailed and possibly stopped.

Treasury Secretary Janet Yellen has relentlessly argued the urgency of this looming crisis:

Treasury Secretary Janet Yellen

“I believe the only way to handle the debt ceiling is for Congress to raise it and show the world, the financial markets, and the public that we’re a country that will pay our bills when we incur them. 

When Congress legislates expenditures and puts in place tax policy that determines taxes, those are the crucial decisions Congress is making.

If to finance those spending and tax decisions, it’s necessary to issue additional debt, I believe it’s very destructive to put the president and myself — the treasury secretary — in a situation where we might not be able to pay the bills that result from those past decisions.”

US Treasury Secretary Janet Yellen

The Republican leadership in Congress is arguing: The debt limit is being breached because of all the Biden spending. 

You have majorities in the House and Senate – this is your problem, you fix it

As a political ploy, it sounds pretty effective.  But the debt limit is always reached on spending that occurred earlier – not the big spending Biden is asking Congress to approve today.  A trillion dollars plus  of today’s debt is due to the Trump tax cuts. 

The Biden spending hasn’t been enacted much less booked yet.

While Republicans say the Democrats have the votes to raise the debt limit, the problem is that Senate Republicans will not let the debt limit extension pass with just a simple majority of 51 (all the Democrats plus Vice President Harris)– they will not yield on the 60-vote supermajority protected by the filibuster.

No one has found a way out of this nightmare yet

The truly frightening undercurrent that is becoming visible is that some Republicans now seem to believe that it is OK for the United States to default – that if that occurs, then the ensuing catastrophe will be at the feet of Joe Biden and the Democrats. 

They lose. We win because they will own the country’s agony.

This is not going away.  It is not even close to getting solved.  The United States may well plunge over the fiscal cliff later this month.

Bruce Wolpe is a Ticker News US political contributor. He’s a Senior Fellow at the US Studies Centre and has worked with Democrats in Congress during President Barack Obama's first term, and on the staff of Prime Minister Julia Gillard. He has also served as the former PM's chief of staff.

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Trump warns of Iran conflict: What it means for global markets

Trump warns the Iran conflict may last weeks, raising concerns over regional stability and global economic impacts.

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Trump warns the Iran conflict may last weeks, raising concerns over regional stability and global economic impacts.


As tensions rise in the Middle East, President Trump has warned that the campaign against Iran could last weeks. Economists and investors are now asking how a prolonged conflict might impact both regional stability and the global economy.

Professor Tim Harcourt from UTS talks about the economic implications of the Iran conflict, including trade disruptions, oil price volatility, and the ripple effects on markets worldwide.

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#IranConflict #GlobalEconomy #MiddleEast #OilPrices #IndiaIsrael #TradeDynamics #EconomicForecast #TickerNews


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Iran’s exiled crown prince is touting himself as a future leader

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Iran’s exiled crown prince is touting himself as a future leader. Is this what’s best for the country?

Simon Theobald, University of Oxford; University of Notre Dame Australia

As Iranian and US diplomats meet in Geneva for crucial negotiations to avoid a potential war, opposition groups in exile are sniffing an opportunity.

The Islamic Republic faces its greatest political crisis since its inception. US President Donald Trump is threatening an imminent attack if Iran doesn’t capitulate on its nuclear program. And anti-regime protesters continue to gather, despite a brutal government crackdown that has killed upwards of 20,000 people, and possibly more.

Talk of a future Iran after the fall of the Islamic regime has grown increasingly fervent. And buoyed by cries heard during some of the protests in Iran of “long live the shah” (the former monarch of Iran), the voices of royalists in the Iranian diaspora are everywhere.

But is a return of the shah really what Iranians want, and what would be best for the country?

What are the monarchists promising?

Iran’s monarchy was ancient, but the Pahlavi dynasty that last ruled the country only came to power in 1925 when Reza Khan, a soldier in the army, overthrew the previous dynasty.

Khan adopted the name Pahlavi, and attempted to bring Iran closer to Western social and economic norms. He was also an authoritarian leader, famous for banning the hijab, and was ultimately forced into exile by the British following the Anglo-Soviet invasion of Iran in 1941.

His son, Mohammad Reza Pahlavi, attempted to continue his father’s reforms, but was similarly authoritarian. Presiding over a government that tolerated little dissent, he was ultimately forced out by the huge tide of opposition during the Islamic Revolution of 1979.

Now, the exiled crown prince, 65-year-old Reza Pahlavi, is being touted by many in the diaspora as the most credible and visible opposition figure to be able to lead the country if and when the Islamic Republic collapses.

Pro-monarchy groups such as the US-based National Union for Democracy in Iran (NUFDI) have become vocal supporters of Pahlavi.

In early 2025, the NUFDI launched a well-coordinated and media savvy “Iran Prosperity Project”, offering what the group claimed was a roadmap for economic recovery in a post-Islamic Republic Iran. Pahlavi himself penned the foreword.

Then, in July, the group released its “Emergency Phase Booklet”, with a vision for a new political system in Iran.

Although the document is mostly written in the language of international democratic norms, it envisions bestowing the crown prince with enormous powers. He’s called the “leader of the national uprising” and given the right to veto the institutions and selection processes in a transitional government.

One thing the document is missing is a response to the demands of Iran’s many ethnic minority groups for a federalist model of government in Iran.

Instead, under the plan, the government would remain highly centralised under the leadership of Pahlavi, at least until a referendum that the authors claim would determine a transition to either a constitutional monarchy or democratic republic.

But students of Iranian history cannot help but note echoes of the 1979 Islamic Revolution. Ayatollah Ruhollah Khomeini had promised a more democratic Iran with a new constitution, and without himself or other clerics in power.

After the revolution, though, Khomeini quickly grasped the reigns of power.

Online attacks against opponents

Pahlavi and his supporters have also struggled to stick to the principles of respectful debate and tolerance of different viewpoints.

When interviewed, Pahlavi has avoided discussing the autocratic nature of his father’s rule and the human rights abuses that occurred under it.

But if Pahlavi tends to avoid hard questions, his supporters can be aggressive. At the Munich Security Conference in February, British-Iranian journalist Christiane Amanpour interviewed the crown prince.

Christiane Amanpour’s interview with Reza Pahlavi.

After the interview, Amanpour’s tough questions resulted in an explosion of anger from his supporters. In a video that has been widely shared on X, royalists can be seen heckling Amanpour, saying she “insulted” the crown prince.

In online forums, the language can be even more intimidating. Amanpour asked Pahlavi point-blank if he would tell his supporters to stop their “terrifying” attacks on ordinary Iranians.

While saying he doesn’t tolerate online attacks, he added, “I cannot control millions of people, whatever they say on social media, and who knows if they are real people or not.”

Do Iranians want a monarchy?

As I’ve noted previously, the monarchist movement also talks as though it is speaking for the whole nation.

But during the recent protests, some students could be heard shouting: “No to monarchy, no to the leadership of the clerics, yes to an egalitarian democracy”.

The level of support for the shah within Iran is unclear, in part because polling is notoriously difficult.

A 2024 poll by the GAMAAN group, an organisation set up by two Iranian academics working in the Netherlands, attempted to gauge political sentiment in Iran. Just over 30% of those polled indicated Pahlavi would be their first choice if a free and fair election were held.

But the poll doesn’t indicate why people said they wanted to vote for him. It also showed just how fragmented the opposition is, with dozens of names getting lower levels of support.

The future of Iran is very unclear at the moment. Even if the Islamic Republic were to be dislodged – a very big “if” – the transition could very well be chaotic and violent.

Would Pahlavi make a good leader? For many critics, his behaviour, and that of his supporters, call into question the royalists’ promises of a more liberal and tolerant Iran.The Conversation

Simon Theobald, Research Fellow, University of Oxford; University of Notre Dame Australia

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Tropfest sparks debate with controversial AI-generated short film

Tropfest sparks debate over AI-generated films, impacting creativity and traditional filmmaking in the festival circuit. #AIinFilm

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Tropfest sparks debate over AI-generated films, impacting creativity and traditional filmmaking in the festival circuit. #AIinFilm


Tropfest, the world’s largest short film festival, caused a stir in Sydney with the screening of a controversial AI-generated short film. The festival’s decision has reignited debates over the role of artificial intelligence in filmmaking and the impact on creative industries.

Filmmakers and audiences are divided. Some praise the innovation, while others question whether AI films should compete alongside human-directed works. The controversy also raises questions about jobs, creative ownership, and ethical considerations in using AI.

Darren Woolley from TrinityP3 weighs in on whether AI could become a legitimate creative partner or if it risks undermining traditional storytelling.

The Tropfest inclusion may mark a turning point for film festivals worldwide in how they embrace or regulate AI content.

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#AIinFilm #Tropfest2026 #ShortFilms #FilmFestivalDebate #AIFilmmaking #CreativeFuture #DigitalCinema #FilmInnovation


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