New IMF Head Says US Must Raise Debt Limit, or Face 'Nasty Consequences'

fysdt writes with this from an article on ABC News: "The International Monetary Fund's new chief foresees 'real nasty consequences' for the U.S. and global economies if the U.S. fails to raise its borrowing limit. Christine Lagarde, the first woman to head the lending institution, said in an interview broadcast Sunday that it would cause interest rates to rise and stock markets to fall. That would threaten an important IMF goal, which is preserving stability in the world economy, she said. The U.S. borrowing limit is $14.3 trillion. Obama administration officials say the U.S. would begin to default without an agreement by Aug. 2."

The sky is falling...OH NO!!! /sarc

[CPTBMan]

It's pathetic how the left (national and international) refuse to admit the fact that the United States pulls in enough revenue each month to service the interest on the debt, which is the only thing that would cause default if not paid. We need to prioritize how we spend the revenue we take in. Servicing the debt comes first followed by the other spending. We won't default if big government spending (i.e. entitlements) isn't paid first. Tax increases on the rich (who already pay way more than their fair share) will not bring down the debt at all if we continue to spend like drunken sailors.

oh no

[phantomfive]

said in an interview broadcast Sunday that it would cause .... stock markets to fall.

Oh, no! Please don't let the stock market fall! Anything but that! It'll be a tragedy for all the people who've bought non-dividend paying stock at prices far higher than they're worth!

It's been pointed out before, and is worth pointing out again, but US government default is prohibited by the 14th amendment of the constitution [wikipedia.org]. Whether they follow it or not is left to be seen.

Re:The same threats from banks... in 2008.

[ColdWetDog]

No kidding? The IMF is the banker's bank: Of the banks, by the banks, for the banks.

It seems more like

"One Bank to rule them all, One Bank to find them,
One Bank to bring them all and in the darkness bind them"