NEW YORK -- The U.S. may be only a few weeks away from defaulting on its debt over political gridlock, thrusting the global financial system into unknown territory that threatens to pummel stock prices and ignite a run on banks.
But views are mixed as to whether this would be a major blow for the dollar -- which has served as the world's major reserve currency since World War II -- or counterintuitively further enhance its safe-haven status as money flocks toward stable investments.
