IMF Chief Says U.S. Must Raise Debt Ceiling, Warns Of Threat To World Economy

[DearAbby]

WASHINGTON -- The impact of a failure to raise the U.S. borrowing limit could extend beyond America's borders and damage the global economy, the chief of the International Monetary Fund said Tuesday.

In a speech at the Council on Foreign Relations in New York, Christine Lagarde urged U.S. political leaders to show the same "political courage" that European leaders demonstrated last week, when they agreed on several new measures to address that continent's debt crisis.

President Barack Obama and Republican lawmakers are at an impasse in negotiations to raise the nation's $14.3 trillion borrowing limit. The federal government is at risk of defaulting on its debt after Aug. 2 if an agreement isn't reached by then.

Credit rating agencies such as Standard & Poor's and Moody's have warned that they will downgrade the United States' top credit rating if an agreement isn't reached. Standard & Poor's has also said it may reduce the nation's credit rating if there aren't steep cuts to the U.S. budget deficit.


More: http://www.huffingtonpost.com/2011/07/26/christine-lagarde-imf-debt_n_909595.html

[villager]

1. The Elites Seem to Be At War With Each Other

I wonder if this is entirelybad for the rest of us humans? :shrug:

[DearAbby]

2. You can bank on it

:Snarf:

[villager]

3. The internecine war? Or the fallout hitting everyone outside the ruling classes, too?

:shrug:

[nadinbrzezinski]

4. This WAS to be expected

none can afford this... at all.

Well except for the ignorant in the House.

[killbotfactory]

7. They could be bluffing

There could be enough republicans in the house who aren't willing to sabotage the world economy for the chance of political gain in the near future.

But you never know.

[nadinbrzezinski]

9. Sad is last year I said they'd do this

the TEA fanatics, radicals, are that crazy and boeher has no control of them.. at all.

Not that Cantor would be any improvement... he is part of the problem... But the IMF going yoohoo boys... over here... we adults would like you to behave like adults, is NOT a good thing.

[Name removed]

5. Deleted message

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[FourScore]

6. This is really really bad. n/t

[spanone]

8. give him boehners number

[nadinbrzezinski]

10. Her, but yes

[dkf]

11. Wow this is embarrassing.

[EFerrari]

12. Does anybody have a list of countries that have told the IMF to go eff themselves?