MercoPress. South Atlantic News Agency
IMF warns US default means massive disruption and world recession
The head of the International Monetary Fund, Christine Lagarde, has warned that a US default could tip the world into recession. In a US TV interview she said a default would result in “massive disruption the world over”. Read full article
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Disclaimer & comment rulesI wonder if the United States has thought of this? I wonder if the United States cares? Are we not all agreed that countries act in accordance with their interests? Perhaps a recession would suit the U.S.? This would be bad for the developing countries? So what? Amongst the ranks of “developing” countries are argieland, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay and Venezuela. Look at that. The whole of latam. Then there's Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. Takes care of the Middle East. And there's Cuba and North Korea as well. And the United States can wreck them all! Crazy like a fox.
Oct 14th, 2013 - 09:45 am - Link - Report abuse 0@Conqueror
Oct 14th, 2013 - 11:02 am - Link - Report abuse 0I will be concerned about in what part of your list will be Britain if I would be you.
Because a US default will put belly up all financial centres around the world.
And guess what?
You are one of them Oops!!!
So you will come first in the list than Argentina, Brazil and even Bolivia because Britain has a big financial centre.
Remember if USAMEX sneezes UK catches the cold like happened with the Subprime MB stuff.
So a US default doesn’t happen yet and your British Shantytowns are growing and growing faster.
BTW do you have to pay for it?
http://www.theguardian.com/money/2013/oct/14/solution-housing-crisis-flatpack
Developing country, where? Hi, hi hi
No, Christine Lagarde.
Oct 14th, 2013 - 11:10 am - Link - Report abuse 0A US default would bring on MUCH, MUCH MORE than a recession.
The economic destruction of nations across the world is not an abstract thing about 'economics', it is REAL destruction of nations, of peoples;
it brings in its wake mass starvations, societal collapses and wars across the planet.
There will be ABSOLUTELY NO FORGIVENESS if the USA destroys the fine balances that we have all evolved to stitch the world together.
And I mean it, to all you US citizens out there:
There will be ABSOLUTELY NO FORGIVENESS, EVER.
@ 3 GeoffWard2
Oct 14th, 2013 - 12:07 pm - Link - Report abuse 0I agree, especially when the US mortgage fiasco caused the whole melt down in the first place.
But the problem is the structure of the US political system itself. I would imagine that the “Founding Fathers” never thought that their descendants would be so partisan as to risk the country imploding.
Quite how the US can hold itself up to be above the squabbles of the SA countries when they behave like this is beyond me.
@2 Poor child. Britain is a DEVELOPED country. As the eurozone died, it had to ask Britain for help. And we gave help. Because we are generous, kindly people. Eurozone dies, Britain prospers. Try up to date, you nancy fingerer!
Oct 14th, 2013 - 03:23 pm - Link - Report abuse 0Those that can pray, should pray. Pray that sanity prevails in the United States of America.
Oct 14th, 2013 - 03:32 pm - Link - Report abuse 0Though the USA might survive the self-destruction of its economy, many countries around the world less robust than the USA will be caused to collapse in chaos.
It will have been the doing of the USA, and the USA alone.
If you think that the generations of wars across the Muslim world was bad, just wait until all the rest are similarly embroiled.
There will be nowhere for any US family to hide.
If you feel you can live with this total and world-wide hate, just carry on the way you are going.
There is little time for all good citizens of the USA to withdraw from the brink of this world-embracing disaster.
You are not just answerable to the US Constitution - you are answerable to the world.
Oh my... Oh my....
Oct 14th, 2013 - 04:29 pm - Link - Report abuse 0The intelligent haughty Anglo and the haughty Anglo turnip are angry at their haughty Anglo-Amrerican cousins......
Whining and blaming them Yanks for doing what Anglos are best at.....
I know that Mr. ChrisR is sour 'cause Gordon.B. shawed 50% of his market value off. (That's why he ended in a South American back-water)
Whats your excuse GeoffWard2?
American here. There really is two different countries-the 'fly-over states and the East & West Coasts. Controlling the backwards South from the top down is no longrr working, because top down style of gov is.crumbling everywhere, see the Arab Spring.
Oct 14th, 2013 - 06:05 pm - Link - Report abuse 0For a 'good cause' Obama is trying to -force- people into the first universal MANDATORY obligation in the history of the U.S., and this cannot stand. Hopefully this disagreement which is proxy for the big diffetences in subregions can lead to increased state a.d individual rights. Because even if our Southern cousins or Tornado Alley.cousins aren't smart enough to create a health care system that doesn't rely on Veteran services (they like to join the military and get free health care for.life as reward), doesn't mean they aren't FREE to evolve at their own pace.
I think the shutdown has potential good.
So tell me think, we know Chris ran away from his natural country of bith as the case was with guzz/stevie. Are you suggesting that Geoff is a runaway as well? It would explain their anger and higher than thou dispositions.
Oct 14th, 2013 - 06:10 pm - Link - Report abuse 0Geoff.......how about asking Chris to pray? Doubtful though, he is an atheist and hates people of faith.
“There will be nowhere for any US family to hide.
If you feel you can live with this total and world-wide hate, just carry on the way you are going.”
From a great deal of posts here, we are too stupid and never travel so what American really gives two fucks......right? Besides, the USA is dying so we might as well go out in a bang.....HAHAHAHAHAHAHAHAHAHAHAHA
Tell me what happens Friday morning.....ok?
I started reading this website last year.........98% of the posters are losing, wannabe something, idiots that think they know economics, politics and and military. The Brits HATE Argentina, though nearly all here have never been to Argentina let alone SA, the Mendozan moron that still suckles his mommas titties is a raving lunatic ranting isolationism and never been outside of Mendoza, Europeans pretending to be SA's, SA's pretending to be Americans, Europeans, SA's exiled form their countries to Europe, Englishman abandoning their home for ....God knows what reason. This place is were the outcasts congregate.........fucking nutjobs.......even the extreme idiot Americans here.....WTF!!! I've enjoyed every country I;ve been to and the people and they are NOTHING like the posters here.
I think the Peronists are praying for an American default. They have waited for a long time for the USA to fall, since they think that until the USA falls Argentina can't move forward. I don't think that will happen though, the consequences are far too catastrophic for the world to stand aside.
Oct 14th, 2013 - 06:11 pm - Link - Report abuse 0Wow ideas, opinions, arguments, ifs and buts,
Oct 14th, 2013 - 06:58 pm - Link - Report abuse 0Yet little on faith and fate,
Well here is my penny worth, if at all it’s worthy,
1, the USA will not default,
2, temporary alternatives will be found
3, Obama will be forced to compromise
,,,,,,,,,,,,,,,,,,
4 Investors may well panic and choose Britain [well it’s a chance]
5, china owns so much of American debt, will she just sit and watch it go up in smoke.
6, it may well wake up some European lazy countries ,
7, as a last resort- if it all went bang and it was a re-run of the American depression of the 1930s and we all revert back to pre-1920 economies,
although we may get bashed, I think Britain among a few others would come through it ok,
Bashed battered and bruised, but survive we would,
As for the Americans, well one says, they are not stupid,
And we think they will yet surprise all of us,
[Last but not least] may we watch the investors jump left or right
Win or lose, what a funny old world we all live in….
Well that’s my impute, mmmmmmmmmmmm
.
wrong christine...
Oct 14th, 2013 - 07:16 pm - Link - Report abuse 0US recession will not have effect on likely world squeeezing..
IMF has no aware of world tendencies..
by the way ; Luis de Funnes is more attractive person than Christine Lagarde..
@ 9 Captain Poppy
Oct 14th, 2013 - 07:25 pm - Link - Report abuse 0Is this retort the best you can come up with? Attacking dissenters at a personal level whilst at the same time ignoring the real problems that your country has caused and still causes in the financial world?
Considering you have travelled the world then you must have seen the hatred of the “Yanks” in most European countries, Africa (Nigeria) and certainly in some countries of LatAm (by all accounts) that even had me standing away from them when in airports, etc. That was due to the overbearing attitude of the “government” run by the Bushes, an oxymoron if ever there was one.
But we, the Brits stood by you and now Obuma treats the UK like a pariah, preferring Muslim relatives but denying he is indeed a Muslim himself.
My only regret is that the U.S. thought so little of us that as a country were denied settlement visas per se. No thought of a wealth investigation which I would have passed easily and not have been a financial burden at any time but a real contributor to your economy.
If you think I ran away you just demonstrate you lack of understanding regarding the health of my wife which I have explained more than once, but that is you being so upset that your country is being called to account for the miss-deeds it has committed: the very thing you accuse others of.
However, whether you like it or not Geoff is correct about the result of the stupidity of your country at all levels, especially this latest fiasco which I am sure you do not agree with. I won’t bother answering your other little personal rants, they are not worth the effort.
9
Oct 14th, 2013 - 07:30 pm - Link - Report abuse 0Hey Pops.....
“The only thing that sustains one through life is the consciousness of the immense inferiority of everybody else, and this is a feeling that I have always cultivated.”
Pops....sorry...— Oscar Wilde
Think #7
Oct 14th, 2013 - 07:58 pm - Link - Report abuse 0Chris says it as it is:
'But the problem is the structure of the US political system itself.
I would imagine that the “Founding Fathers” never thought that their descendants would be so partisan as to risk the country imploding.'
.........
Ay #8
'For a 'good cause' Obama is trying to -force- people into the first universal MANDATORY obligation in the history of the U.S., and this cannot stand.'
Sorry Ay, I think that taxation is supposed to be a mandatory universal obligation. But perhaps you mean the first mandatory universal benefit.
.....
Hi, Poppy,
you're right about most things you say in #9, we are a funny bunch of f****ers. When we get a 'bee in our bonnet' we really do hit out. Sorry you and yours have to be my target, but nothing is more important to the whole world community, and I think very few people in the US have the slightest idea just how big a hit you might give the world if you get this wrong. Good luck.
I was never one for the classics, though academia conditions us to believe that reading them makes us superior to those who like pulp fiction. Though I am fond of poetry......mostly the unknown. Though I like a few Mansfield....I and sure you are superior enough to pick them out.
Oct 14th, 2013 - 09:11 pm - Link - Report abuse 0At any rate........Give me Nelson, Brown, even Koontz any day and I am simple enough to be pleased.
So when are you arriving in Trout Run voice? I am willing to bet in the next twelve months you will not be there.
If trust is lost in Treasuries then the world will hit a brick wall. T-Bills are the ulitmate backers of every contract traded around the world.
Oct 15th, 2013 - 01:51 am - Link - Report abuse 0How does any one figure that a default in the U.S. is not one day inevitable? No matter what the U.S. does to try and stop borrowing, someone screams it is a bad idea.
Oct 15th, 2013 - 05:08 am - Link - Report abuse 0Sure, if it is possible to avoid that catastrophe, it ought to be prevented. As well, a country has to honor its debts.
But the solution, raising the debt ceiling, is a cycle that has to bust sooner or later.
How many times has the debt ceiling been raised since the year 2000, in order to not default on U.S. debts?
Is that a practice that can continue indefinitely?
What kind of a solution to this “raise the limit again” cycle do you foresee?
Or do you think the U.S. debt will just stabilize itself somehow and become smaller?
Maybe this is just a “overly simplistic” question but,
How long do you think the U.S. can just keep on kicking this can down the road?
Accruing 16,000 billion dollars of debt was apparently a very dangerous thing for the U.S. to do. And of course, I know, I know, it was solely George Bush's fault.
The immediate peril of billions of people is of course paramount. Is it going to be a long time before the “new” debt limit is reached and the U.S. and the world are facing the same predicament?
Hey boys are you going crazy for few dollars?
Oct 15th, 2013 - 05:26 am - Link - Report abuse 0Let’s be serious for a moment will you please?
@Geoff
Blaming US families for what the US government and politician from both parties do to the financial market is at least wrong and extremely dangerous.
You cannot blame the American families for the economic disaster created by the incompetent politicians in US. After all they will be also victims of the disaster.
Having said that now you can continue bashing Captain PooP ha ha
BTW Captain where is may money?
(9) Captain Poppy
Oct 15th, 2013 - 05:47 am - Link - Report abuse 0Don't take Mr. GeoffWard2 too seriously...
The brasilian garotas and the air condition have blurred his senses...
When “Doomsday” happens, you and your US/Argie family will always be welcomed to hide down here, in Patagonia......
The ultimate place were real outcasts congregate.... even Yankee ones ;-)
(18) bushpilot
You ask...:
“Maybe this is just a “overly simplistic” question but, how long do you think the U.S. can just keep on kicking this can down the road?”
I say......:
You Sir, have just asked the ultimate tera-million question of capitalism.
The answer being....................................................................... 42;-)
Bushpilot
Oct 15th, 2013 - 07:05 am - Link - Report abuse 0Good, sincere post, regardless colour.
If you continue that thought, having in mind the different solutions, you'll find out that the only ones are
1) reduce the debt by taxing the wealthy. A solution that solves your immediate needs but doesn't adress the root of the problem, which is the need to produce in order to keep up with GDP, shouldn't the rich ones agree on paying for the whole mess.
2) Stop the money prints, stop the overproduction, start producing with quality in mind, not quantity. Find a way to ease the pain of the wealthy ones and their losses. This would mean to change the system entirely and focus on what we need when producing, instead of producing out of need...
I just can't seem to come up with another solution, which isn't the same as there being none.
No chance of America standing up to thergs now. It wwants to do what the rgs have already done.
Oct 15th, 2013 - 09:03 am - Link - Report abuse 0It's not capitalism that causes these deficits, it's the greed of the wealthy that feel they should not be taxed and the ultra conservative Lipton tea baggers.
Oct 15th, 2013 - 09:17 am - Link - Report abuse 0I learn soooooooo much from the scholars here. Think, thanks for welcoming me to Argentina's Naziland in southern Argentina, but I think I will pass. Welcome we collapse by all the predictions here, I think I will intrude on Canada. If I am gong to be cold, I would rather it not be in a Bolvarian dictatorial country with peronists. But thanks again.
Think # 20
Oct 15th, 2013 - 10:32 am - Link - Report abuse 0Uma garota e ventiladores,
but neither blind me to the threats posed to the USA and the rest of us.
The jaw-dropping absolute stupidity of turning the governance of the most powerful nation on earth into an adversarial game with bent rules, no limits and no responsibilities for impacts beyond the border.
I think it was .. who said “when America sneezes millions of poor foreign people die”.
..........
DanyBerger #19
'Blaming US families for what the US government and politician from both parties do to the financial market is at least wrong and extremely dangerous.'
Every US family will be forced to reflect, at every turn, how their over-consumption and massive accumulated personal and national debt has led the whole world to hate* them. This is not envy; *this is/will be the destruction of their lives and those of their offspring across the whole world. I do not absolve my home country; they are similarly culpable, but the UK's impact on the world from their bit going 'tits-up' is much less than that of the USA.
You say that those US families who over-consumed and voted-in those culpable are absolved of guilt - hell, they built the debt; they provided the bullets. Your (Nuremberg) argument does not stand up to scrutiny.
http://www.youtube.com/watch?v=ddtEz4DRojo
Oct 15th, 2013 - 01:34 pm - Link - Report abuse 0and in action.....
http://www.youtube.com/watch?v=ddtEz4DRojo
11 Briton
Oct 17th, 2013 - 05:53 pm - Link - Report abuse 0Well here is my penny worth, if at all it’s worthy,
1, the USA will not default,
2, temporary alternatives will be found
cheers..lol
Briton
Oct 18th, 2013 - 07:17 am - Link - Report abuse 0You guessed they would raise the debt ceiling?
Damn boy, you are good.
What made you make that outrageous guess?
Could it have been the fact that this is the 20th time it's been done is about as many years?
Or was it other factors entirely?
You are good man!
*shouldertap*
Must be a lot of disappointed SA's.....even the runaways like stevie.
Oct 18th, 2013 - 09:08 am - Link - Report abuse 0Relief for the rest of the world ... destruction deferred.
Oct 18th, 2013 - 12:14 pm - Link - Report abuse 027 Stevie
Oct 18th, 2013 - 06:10 pm - Link - Report abuse 0ha ha..
its was 50-50..lol
50% chance of world destruction is like the toss of a coin. ... Relief.
Oct 19th, 2013 - 10:50 am - Link - Report abuse 0You guys think so?
Oct 19th, 2013 - 12:15 pm - Link - Report abuse 0How about next January?
Is that a 50-50 as well?
If your odds are 2:1, I'd love to put a years salary on the debt roof being raised again...
50-50... Allow me to get the guitar for this tune...
;)
31
Oct 19th, 2013 - 01:15 pm - Link - Report abuse 0The 50/50 coin toss really isn’t 50/50 — it’s closer to 51/49, biased toward whatever side was up when the coin was thrown into the air.
http://www.smithsonianmag.com/science-nature/Gamblers-Take-Note-The-Odds-in-a-Coin-Flip-Arent-Quite-50-50-181022961.html#ixzz2iAoL4hQI
Well,
Oct 19th, 2013 - 05:52 pm - Link - Report abuse 0On a lighter note, we could say, how much air can you put into a balloon before it goes bang.
Common sense tells us that sooner or later you bring the debt down, or the debt will go bang
Would you not agree..
.
@ 34 Briton
Oct 19th, 2013 - 06:43 pm - Link - Report abuse 0“Common sense tells us that sooner or later you bring the debt down, or the debt will go bang, Would you not agree..”
Not in the case of a country holding the reserve currency, they can just print money to inflate their way out of the problem. If you owe THREE TRILLION and you inflate (over a period of time) 50% then the real cost is “only” 1.5 trillion.
And guess who will pay for that? Yes, I am sure we all know the answer to that one. WE WILL, the users who have to deal with the reserve currency.
Great eh?
true..
Oct 19th, 2013 - 08:35 pm - Link - Report abuse 0The emperor was only dressed until people realized he was naked...
Oct 19th, 2013 - 10:00 pm - Link - Report abuse 0@ 37 Stevie
Oct 20th, 2013 - 11:51 am - Link - Report abuse 0And the emperor was PEPE!
I knew you would get it sooner or later.
Sssch Chris, there's a discussion going on, we'll play later...
Oct 20th, 2013 - 12:00 pm - Link - Report abuse 0Commenting for this story is now closed.
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