Congress Economy

World Bank: Default Would Be a “Disastrous Event”

The president of the World Bank is taking the prospect of a U.S. default very seriously, warning that we’re just “days away from a very dangerous moment.”

“The closer we get to the deadline the greater the impact will be for the developing world.

“Inaction could result in interest rates rising, confidence falling and growth slowing,” said Mr Kim, speaking at the World Bank’s annual meeting in Washington.

“If this comes to pass it could be a disastrous event for the developing world and that will in turn greatly hurt the developed economies as well,” he added.

Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell signaled today that they may be close to ending our current predicament, but I’m not particularly comforted by that.

The X factor remains House Republicans and John Boehner’s willingness to pass a bill with Democratic support.

This very well could come down to passing a bill on the 16th, and Boehner will more than likely be forced to pass something with Democratic support or not at all. The Kamikaze Caucus is determined to strike inside the United States.

  • mrbrink

    “Disastrous”= Exceptionalism to Wingnuts.

  • Badgerite

    I do hope this wakes the public up somewhat to what the GOP is about these days. They were the intellectual geniuses behind the legislation that deregulated Wall Street and the financial markets and thereby brought us the economic meltdown of 2008 and they have been the legislative drag on the economy to prevent any full recovery ever since. This is just the latest and worst in a long line of awful things they have done to the middle class and the country.

    • villemar

      In my simplistic, reductionist description of the U.S. electorate, roughly a third are diehard Republicans, a third are diehard Democrats, and the remaining third are mostly apolitical or minimally political; they don’t marinate in politics but will often just vote in Presidential elections every 4 years. It’s the middle third that you don’t want to piss off. The TP caucus is doing a bang up job though on that front. I think if you minus a tiny handful of dipshit hipster purity progressives and add basically all moderate and establishment Republicans remaining, that explains the current polling numbers. I do think there are about 28% of unreconstructed Teapublicans who will jump off a cliff if their reps from the crazy caucus and there media allies told them to. They are lost causes. But the good news is I think we get all of the middle third of apoliticals & minimally political on our side from this. The Nihilistic Vandal wing of the party are just hastening their own eventual demographic self-annihilation.

      • Badgerite

        Oh God, I hope so.

      • fojap

        I’ve spent most of my life in the Northeast, so I don’t really have a good understanding of these mostly Southern folk. However, drawing parallels to my youth, when I spent a large amount of time hanging around far left wanna-be-radicals and anarchist types, I’d guess that the number who would jump off a cliff is probably less than 28%. It’s possible to live in an information bubble without being entirely aware of it. If everyone you know says the U.S. is teetering on the verge of fascism, you begin to believe it. For me, the wake-up call was the Tompkins Square Park riot. That sort of burst the radical bubble I’d been living in. Now, I can look back and feel frankly embarrassed by some of the things I believed.

        Some percentage, and I don’t pretend to know how many, of the tea party people will feel the same way one day.

        Fortunately, left wing anarchists back in the eighties didn’t have enough power to be dangerous to anyone but themselves. Too bad we can’t say the same for the tea party.

        • Christopher Foxx

          Now, I can look back and feel frankly embarrassed by some of the things I believed

          The difference between you (and much of the left, truthfully) and the wingnuts and most of the right. A willingness to change your view.

  • Nefercat

    What worries me is that the teabagger traitors won’t be bothered at all by default because they a) don’t think it will be a big deal, b) they can use it to impeach the President! and c) this no big deal/globally catastrophic event will show everyone else on the planet how powerful we are! USA! USA! USA!

    So from their demented, vicious perspective, it’s win, win, win. An event that is not a big deal anyway can be used to put the blah man in the White House in his place and show the rest of the world that we are so the boss of them. What could go wrong?

    • feloniousgrammar

      Oh, most of them would hurt like hell when their disability checks and Social Security checks stopped coming; but it would all be Obama’s fault.

      • stacib23

        My thoughts exactly. Just this past weekend when there was a snafu with the machines that process SNAP benefits, I would have loved to have been at a WalMart in any of the red states just to watch their heads explode in fear of how they would eat. Ten bucks that they blamed Obama and the government (even as they bitch about all of the ways government is bad).

  • Username1016

    It’s amazing, isn’t it? Roughly 40 know-nothing idiots can willfully crash the economy of the entire world. Guess we should be proud that every single one of them is an American.

    • Ryan Gray

      Except that Canadian Cruz.

    • feloniousgrammar

      After this is over, we need to get rid of this vote, make the process automatic, and take legal action against the vandals. It’s too late for the expulsion of insurrectionists in the House; but it’s clear that the debt ceiling has become an instrument with which to undermine democracy. There is no way that the Founding Fathers— the actual ones who wrote the U.S. Constitution— intended to let a minority take over the country and threaten it with it with economic destruction. For those “originalists” out there, the Founders said nothing about “debt ceilings” and Congress voting on them. It’s a maladapted relic of another age and it needs to be eliminated.

      • Christopher Foxx

        Any time the debt ceiling is approached, it’s increased. Why bother to have it at all?

    • fojap

      I know it’s in poor taste to link to one’s own blog, but if this comes to pass I hope these people’s names go down in infamy.

      • Christopher Foxx

        Linking to unrelated other sites for spamming or commercial purposes is in poor taste. Linking to something relevant on another site, your own or someone else’s, is not.

        Seeing occasional links to other sites is how I find other sites of interest. It’s what originally brought me here.