IMF Chief Warns of Global Consequences of US Default

Wednesday, July 27, 2011

The looming threat of the U.S. defaulting on its debt has prompted many to discuss what the consequences might be here. But what happens to the rest of the world if the U.S. defaults? According to the International Monetary Fund, it will be a disaster. At a press conference yesterday, IMF chief Christine Lagarde called a U.S. default "a very, very, very serious event, not just for the U.S., but the global economy at large."

Gian-Maria Milesi-Ferretti, assistant director for the western hemisphere department of the IMF, speaks about the necessity of avoiding default and how the U.S. can do it.


Gian Maria Milesi Ferretti

Produced by:

Arwa Gunja

Comments [1]


So the IMF recommends that the US "..put together a credible, large, medium term plan that ensures that fiscal policies return to a sustainable footing.."
Sounds like a good description of cut, cap and balance which the Democrats who urge compromise have refused to formally debate in the US Senate and the President has promised to veto.

Jul. 27 2011 10:44 AM

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