Post date: Oct 13, 2013 5:35:11 PM
IMF Managing Director Christine Lagarde warns that failure to lift debt ceiling could lead to "massive disruption the world over."
WASHINGTON, D.C., UNITED STATES (OCTOBER 12, 2013) (NBC) - International Monetary Fund Managing Director Christine Lagarde on Saturday (October 12) warned that the combination of a U.S. government shutdown and failure to raise the looming debt ceiling deadline could lead to "massive disruption the world over."
In an interview with NBC's Meet the Press broadcast on Sunday (October 13) Lagarde said "creative accounting instead of raising the debt ceiling by the October 17 deadline would be detrimental.
"You have to honor your signature, you have to give certainty to the rest of the world and you have to make sure that your own economy is consolidating that welcome economy that we have seen in the last few days, because it impacts the entire economy" The IMF chief said.
President Obama continued to pressure lawmakers to raise the debt ceiling and end the government shutdown.
The budget battle between Obama and Republicans who control the House of Representatives has idled hundreds of thousands of government workers hit by a 13-day government shutdown and put the United States at risk of a historic debt default, possibly by next Thursday, unless the borrowing limit is raised.
With the potential of an economic calamity looming, Obama and his Republican opponents are trying to agree on how long to extend the debt ceiling, with Republicans wanting to limit the extension to six weeks to try force more concessions out of the president.