from Nicholas J. Evancik : "What is about to happen if the Republicans refuse to raise the debt ceiling is called "Sovereign Default". Basically the country will not be able to pay interest payments to bondholder. "If the debt ceiling isn't lifted again this fall, some serious financial decisions will have to be made...At some point, the government won't be able to pay interest on its bonds and will enter what's known as sovereign default, the ultimate financial disaster achieved by countries like Zimbabwe, Ecuador, and Argentina (and now Greece)...If the American government can't stand behind the dollar, the world's benchmark currency, then the global financial system will very likely enter a new era in which there is much less trade and much less economic growth. It would be, by most accounts, the largest self-imposed financial disaster in history." _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
