Jim Cramer Hates Being 'Downbeat,' But Warns: Default On Debt Would Affect Geopolitical Face Of US

Prominent market commentator Jim Cramer believes defaulting on the national debt could change the geopolitical face of the United States as the debt ceiling impasse continues although the White House has reportedly acknowledged some spending cuts may be required.

"I hated being so downbeat tonight but I also never thought that there would be so many people who don’t seem to realize that defaulting changes the geopolitical face of our great nation. There are other ways to disagree," Cramer said in his tweet.

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The expert's views come at a time when Treasury Secretary Janet Yellen, while speaking at the meeting of Group of Seven finance officials, acknowledged that failure to avert a looming default would spark a global downturn, risk undermining U.S. global economic leadership and raise questions about its ability to defend national security interests.

It is noteworthy that following Tuesday's inconclusive talks on the debt ceiling crisis, the much-awaited meeting between President Joe Biden and House Speaker Kevin McCarthy scheduled on Friday has been reportedly postponed with both leaders having agreed to meet early next week.

Aides from both sides have begun discussing ways to limit federal spending, reported Reuters.

Stocks: Cramer noted there are a few key sectors that were robust in 2011′s debt ceiling crisis and said that consumer products, food, tech and drug names all have potential upside in the event of a turmoil, according to a CNBC report.

He highlighted Eli Lilly And Co LLY as a name that stands out in the pharmaceuticals sector. Cramer believes PepsiCo, Inc. PEP is a fabulous performer while Mondelez International Inc MDLZ and Hershey Co HSY offer strength among food stocks.

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