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Thursday, October 3, 2013

Treasury Warns of Debt Default Risks

In a published article released this week, the Department of Treasury warns of the risks associated with defaulting on its debt.

“The United States has never defaulted on its obligations, and the U. S. dollar and Treasury securities are at the center of the international financial system. A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse.”

Copy of the Treasury report.

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