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Saskatchewan News

Saskatchewan could take hit from U.S. debt crisis

Export market could become more expensive
Reported by Alex Docking
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The United States government has reached its financial limit and along with America, Canada and Saskatchewan could also feel its effects.

Colin Boyd, an Edwards School of Business professor in Saskatoon, said the United States still has a deficit budget after the 2008 recession and now the cycle of borrowing and repaying has stopped.

Boyd said the reason is because the U.S. Congress is controlling what the government can borrow - not U.S. President Barack Obama.

“If Congress doesn’t come up with some solution then it’s possible the United States may default on repaying some of the loans that are due on August the second, onward,” explained Boyd.

That could affect a lot of things such as social security and Medicare.

Saskatchewan's export market could also take a hit.

“It wouldn’t be there and also our currency is probably going up, which makes our exports more expensive as well,” he said.

But it could also mean for money flowing into Canada through investments.

Edited by News Talk Radio’s Sabeen Ahmad.