Tags: US | WorldBank | dangerous | moment

World Bank Chief: US Heads toward 'Very Dangerous Moment'

Sunday, 13 Oct 2013 04:53 PM

World Bank chief Jim Yong Kim warned Saturday that the United States was headed toward peril as politicians failed again to resolve a standoff over the budget and debt ceiling.

"We are now five days away from a very dangerous moment," Kim said at the close of the annual World Bank-International Monetary Fund meetings in Washington.

The U.S. and world economies face higher interest rates, falling confidence and slower growth if the U.S. Congress does not raise the $16.7 trillion borrowing cap, Kim said.

The U.S. Treasury has said that it would run out of adequate cash to pay all the country's bills as early as Thursday without a debt cap increase.

That has sparked worries that Washington could default on its debt, something that would rock the world's financial markets.

"The closer we get to the deadline, the greater the impact will be for the developing world," Kim said.

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

"I urge U.S. policy makers to avert this crisis," Kim said.

Finance officials from around the world expressed deep worries during the IMF-World Bank meetings last week over the partial government shutdown that is in its second week, and the failure to raise the debt ceiling.

© AFP 2017

 
1Like our page
2Share
StreetTalk
World Bank chief Jim Yong Kim warned Saturday that the United States was headed toward peril as politicians failed again to resolve a standoff over the budget and debt ceiling.
US,WorldBank,dangerous,moment
223
2013-53-13
Sunday, 13 Oct 2013 04:53 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved