IMF chief: US default would bring 'massive disruption'
Oct. 12, 2013 at 9:25 PM ET
JONATHAN ERNST / Reuters
IMF Managing Director Christine Lagarde speaks at a final news
conference following the annual IMF-World Bank fall meetings in
Washington, Oct. 12, 2013.
International Monetary Fund
Managing Director Christine Lagarde warned in an interview that the
combination of a U.S. government shutdown coupled with a default on the
country’s debt — looming if Republicans and the White House can’t reach a
deal soon — would bring “massive disruption the world over.”
In
an interview with NBC News’ Meet the Press moderator David Gregory,
Lagarde said “creative accounting” as opposed to raising the debt limit
by the Treasury’s Oct. 17 deadline was not the way out of this current
crisis – a view in contrast to that of a growing number of Republicans
in Congress disputing the dire forecast.
“When you are the largest
economy in the world, when you are the safe haven in all circumstances,
as has been the case, you can't go into that creative accounting
business,” Lagarde said.
