Australian Senate leader Barnaby Joyce made a rare statement that the United States is running up so much deficits and debt that it's in the same position as Germany before second World War.
On Wednesday, the National Party’s Senate leader Barnaby Joyce asked Treasury Secretary Doctor Ken Henry, in a Senate estimates hearing, what an American default on his country’s debt could mean within the next few years, according to
Brisbane Times. However, Henry was cautious in answering such questions because he feels such hypothetical questions could bring the international community financial panic.
“I don't mind discussing hypotheticals in general … [but] one has to be careful not to discuss publicly hypotheticals that are that extreme,” Henry stated. “I don't, myself, consider that outcome to be a high probability outcome, certainly not one that I would want to say much about in a public forum.”
Nevertheless, Joyce persisted in getting an answer because he believes that the United States’ financial debt could be a real danger to the global economy so, therefore, should be debated on. “Far from turning around the [George] Bush legacy of deficits and debt, [US president Barack] Obama has made it worse. It has got all the hallmarks of a financial collapse about to happen in America.”
He further cited investor confidence, or lack thereof, in the US economy because of its ability to finance deficits and this is ruining the US Dollar, “The US dollar is almost becoming like junk bonds.”
Joyce asked
The Age, “It is the elephant in the room. This is a huge risk that Australia faces. What is the game plan, what happens if it comes unstuck?”
The highly independent National Party Senator was elected into office in 2004 and his term will run until June 30, 2011.
