Posted on 10/03/2013 10:14:05 PM PDT by Tailgunner Joe
International Monetary Fund Managing Director Christine Lagarde said Thursday that a failure to raise the U.S. debt ceiling could "very seriously damage" the global economy.
"The government shutdown is bad enough, but failure to raise the debt ceiling would be far worse, and could very seriously damage not only the U.S. economy, but the entire global economy," Lagarde said in a speech at George Washington University ahead of the 2013 World Bank-IMF Annual Meetings.
"So it is 'mission-critical' that this be resolved as soon as possible," she added.
Referring to the anticipated tapering of Federal Reserve's quantitative easing program, Lagarde this turnaround should be managed very carefully.
"Because the normalization of monetary policy affects so many markets and people across the globe, the U.S. has a special responsibility: to implement it in an orderly way, linking it to the pace of recovery and employment; to communicate clearly; and to conduct a dialogue with others," she said.
Growth momentum in emerging markets is slowing and the external environment is becoming more challenging, partly due to the anticipated exit from easy monetary policies in the U.S., Lagarde said.
Therefore, the immediate priority for them is to ride out the turbulence as smoothly as possible, spelling out some of the needed policy responses to prevent these economies getting stuck in low gear, including currency depreciation, liquidity provision, and structural reforms, she noted.
Lagarde observed that in Japan, the government's aggressive stimulus policy seems to be working, boosting GDP by about 1 percent. Deflation is coming to an end and a newfound optimism is in the air. However, still the effort is not complete, she said.
Japan also needs a credible plan to bring down its debt, which is approaching 250 percent of GDP. "The initial consumption tax increase is a welcome first step. Entitlement reform is the next one. Without these policy fundamentals, any gains made so far could easily melt away," she said.
Carrying Obama’s water? The Senate needs to start passing what the House is sending over and this mess would clean up nicely.
Just like the TARP was "essential to the financial security of the world's economy" this is nothing more than a bunch of lies by not-so-skilled liars, miming Obama to scare the American public, especially investors.
Obama's Alinsky colors on stage for all to see. This is exactly how dictators get "elected for life!"
Obama should be run out of DC on a rail!
Let it ride. Obama sucks and his entire .31 for every dollar can go with it.
I loathe the government. period.
I can’t talk money to these people, it’s not my trade at all. I CAN think, though. What I observe is that we are running up debt and unsecured liability with no control by people who don’t listen to us and who have as much economic sense and self control as a toddler in a toy store as evidenced by repeated multi million dollar trips with extravagances such as a separate plane for the family dog, on a $450K salary, and that much concern and respect for the economy.
The debt is ignored by the media, who seem to be the ones in charge.
Our children are the ones who are suffering. They are strapped with this debt. We are treating them like neglected kids at a backyard drunken barbecue; unattended and uncared-for, with everyone around saying it’s fine, they’re fine.
Whoever she is, she is saying that Japan is doing well as it gets its debt to 250% of GDP, and says nothing about our debt, just that the world needs us to keep borrowing from our neglected kids.
The ones taking control of the republican party are doing so as kindly as possible. It’s a “ok I think you’ve had enough beer now. Let me have the keys” message.
They are family men. They are aware of the long term situation.
This woman does not look at it like that. She’s in a money now world.
The heck with her opinions.
The correction in our debt, liability, GDP, unemployment is going to get painful.
We can wait longer, as Laura Ingraham suggested O’Reilly, and this woman, with no consideration for our concerns for our kids. But that’s just giving the driver another beer.
FUCL
Christine Lagard is an insider living large while wringing hands over the little guy.
Hear! Hear!
Lagarde is an out and out Socialist. Always has been. So it’s no surprise she advocates more interventionist policies that are meant to prop up government expansion.
China and Russia are number one now per the US media. Go take your plastic collection buckets there.
“Treasury warns default could be worse than Great Recession.” The president and the Democraps are setting us up for a Constitutional Crises in which obama will claim that failure to raise the debt ceiling will cause a world wide depression and he must act by authority of the Full Faith and Credit Clause in the US Constitution. He will then raise the debt ceiling and spend like there is no tomorrow. This will be an UN-Constitutional end run around the HOUSE, making them irrelevant. Debbie Wasserman-Schultz said today will not let the Republicans ruin the Full Faith and Credit of the US Government, because to do so would plunge the USA into a Depression. At the time we will no longer be a free people but subjects or serifs. And America will become the equivalent of Nazi Germany. Time to be afraid, very afraid.
Christine’s (or is it Christopher’s) salary is tax free. She can stfu when lecturing anyone who pays taxes
LaGarde is a transvestite.
S(he) generally wears a scarf to conceal it’s Adam’s apple.
S(he) is very dangerous. Would love to confiscate our money like they did
in Cypress.
Thw world’s gonna end.
NO WORRIES COMRADES... YOUR BROTHER IN ARMS... JOHN “BONE-HEAD” BOEHNER HAS ANNOUNCED THAT HE WILL RAISE THE DEBT LIMIT AND NOT ALLOW THE US TO DEFAULT... at least not until natural economic forces drive the country into default.
They said the same thing about sequester and now the rats are praising “their” reductions in government growth. All lies... we are broke and floating on a bubble of quickly diminishing credit.
Damage to the global economy.......
How much will you pays us Christine to assure there is no damage?
How big can this bubble be blown?
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