Thank You Sri Lanka

15 Oct

While the idiotic behavior in Washington marches on, the endless tongue in cheek discussions about default and what that means in terms of the full faith and credit of the United States continues. As we mentioned in our previous blog, some debtor nations have weighed in on the process but have yet to add to any real discourse on the broader context of our serious debt load. However, the Central Bank Governor of Sri Lanka has saved the day by both cutting rates ( in case of a default) and also providing some commentary on the lasting collateral damage done to our global  reputation. The Governor stated ” Even if the U.S. were  to get their act together and get past the debt ceiling, I think the fact that the global economy has been put under so much stress is something that many policy makers would not forget.  That’s going to lead to various changes in the way central banks will perceive the safety and quality of investments”. Standard and Poors take note.

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