Friday, February 19, 2010

Australia likely to default on debts?

Barnaby Joyce, the opposition's finance spokesman, a few weeks back speculated that Australia is in danger of defaulting on its government debt. Joyce was slammed for irresponsible comments that could unsettle world financial markets. Reserve Bank of Australia governor Glenn Stevens today entered the fray with a comment that is schizo at best:

There are few things less likely than Australia defaulting on its sovereign debt - we never have, there's never been a default by this country, I don't think there's ever been a default by any of the states.

So according to Stevens an Australian default is a near certainty but is highly unlikely. That should calm the markets.


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