Canadian economists are growing increasingly nervous as the United States inches closer to a potential default due to an impasse in debt ceiling talks.
That’s not just because a default, which could happen as soon as the end of this month without a deal, would be catastrophic for the American and global economies.
It’s also because the fight over U.S. government spending and debt may have long-term ramifications on investor confidence, those economists told Global News on Friday. “The bottom line is there’s no good outcome here,” said Michael Gregory, the Bank of Montreal’s deputy chief economist who also oversees U.S.
economics at the institution. “Whether or not there’s a technical default or not, I think that’s almost a moot point.” The comments were in stark difference from January, when the U.S.