Democracy Now: IMF: Debt Deal Failure Would Have “Far Reaching” Consequences

In addition to warnings for the United States, fears have been raised about the effect on the global economy should Congress fail to raise the U.S. debt ceiling. Speaking in New York, the new head of the International Monetary Fund, Christine Lagarde, warned of negative repercussions worldwide.

Christine Lagarde: “Frankly to have a default or to have a significant downgrading of the United States signature would be a very, very, very serious event. Not for the United States alone, but for the global economy at large, because the consequences would be far reaching. It would not stop at the frontiers of the United States. It would go beyond.”

~ by wheresthemic on July 28, 2011.