(Bank of Canada Governor) Carney warns U.S. default would have 'profound implications'

[alp227]

Source: CBC News

The governor of the Bank of Canada, Mark Carney, says a U.S. government default on its debt would have "profound implications" for financial markets and that "it's our view that's not something that should be tested."

Carney said Wednesday the bank does not expect the U.S. will default, but that there's no certainty about what the effects would be if it did.

He said if there is no agreement among U.S. lawmakers by the deadline, but no default because the government meets its interest and principal payments by deferring other spending, that would still likely slow the U.S. economy.

U.S. lawmakers continued Wednesday to debate various options for a deal to cut spending that would allow passage of a measure to increase the U.S. fiscal borrowing limit by the government's deadline of Aug. 2. The U.S. Treasury Department has said the country would be in default after that time.

Read more: http://www.cbc.ca/news/canada/story/2011/07/20/bank-canada-monetary-policy-report.html

[Turbineguy]

1. The ratings agencies

should probably drop the rating anyway until those teabagger idiots are tossed out of office. Because this will continue.

[SpiralHawk]

2. "Your U.S. RepubliHosers are a bunch of Total DingAlings." - Carney of the Great White North

"How did the US ever let these traitorous dingbat hosers any where near the levers of power? Did you have a bunch of greedy billionaire A-holes pulling their puppet strings with Fox Propaganda (R), or what? The world weeps for you having to suffer through the nattering negativity and blustering lies of the RepubliHosers."

- Carney of The Great White North