Monday, July 11, 2011

IMF chief warns US on debt limit

New IMF chief, Christine Legarde

Source: Press TV

The new head of the International Monetary Fund (IMF) says that a US debt default would jeopardize and destabilize global economy, though she added that she could not imagine US officials letting that happen.

Christine Lagarde warned that a US debt default “would be a real shock, and it would be bad news for the US economy”, so she expressed hope “that there is enough bipartisan intelligence and understanding of the challenge that is ahead of the United States, but also of the rest of the world.”

Should the US lawmakers fail to reach a compromise by the August 2 deadline, there could be “real nasty consequences”, she stressed, such as rising interest rates, depressed stock markets, increased unemployment, and decreased investment.

“I can't imagine for a second that the United States would default,” Lagarde told the ABC News in an interview. “But, clearly, this issue of the debt ceiling has to be resolved.”

She stated that a potential debt default would have repercussions beyond the US, adding, “"It would certainly jeopardize the stability, but not just the stability of the US economy it would jeopardize the stability at large."

The US congressmen have currently locked horns over the raising of the debt ceiling. While the Democrats are calling for an increase in tax revenue and an end to the tax cuts made in the Bush era for the wealthier Americans, the Republicans are against any tax increase and advocate a reduction of civil services such as Social Security and Medicare.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russia Today (Live)

World News 2017

South Front Military Review 2017

Syria - News 2017

US News 2017

The Russian Perspective

Debate – Global Issues 2017

Current Affairs - Important Interviews – 2017

Important Information 2016 - 2017

Yemen News 2017

Turkey News 2017

Ukraine News 2016 - 2017

Palestine & Israeli Crime 2017

Iraq News 2017

Iran News 2016 - 2017

Important Documentaries

Viewpoint, Discussion & Opinion - 2017

Abby Martin – Empire Files

Global Economic News 2017

Egypt News 2016 - 2017

Libya News 2016 - 2017

Bahrain News 2016 - 2017

Sheik Imran Hosein - Islamic Eschatology

George Galloway – Comment & Opinion

English FA Cup 2016 – 2017

New Age Weather

Space News

Music for the Revolutionary Mind

Global Revolution LIVE!

Watch live streaming video from globalrevolution at

Japan’s 3 Nuclear Meltdowns STILL ongoing (News Censored)