World To US: Stop 'Tap Dancing' And Solve Default Crisis - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

World To US: Stop 'Tap Dancing' And Solve Default Crisis

Posted: Updated:
  • World To US: Stop 'Tap Dancing' And Solve Default CrisisMore>>

  • Idahoans Tell Congressmen To Continue Shutdown

    Idahoans Tell Congressmen To Continue Shutdown

    Monday, October 14 2013 12:37 PM EDT2013-10-14 16:37:12 GMT
    BOISE, Idaho (AP) - Idaho's congressional delegation says their offices are receiving calls two to one in favor of continuing the government shutdown until President Barack Obama agrees to defund the Affordable Care Act.More >>
    BOISE, Idaho (AP) - Idaho's congressional delegation says their offices are receiving calls two to one in favor of continuing the government shutdown until President Barack Obama agrees to defund the Affordable Care Act.More >>

NBCNEWS.COM - The approach of the U.S. default deadline — with no clear resolution in sight — is being greeted around the world with a mixture of angst and anger. "It's hard not to believe lunatics have taken charge of the asylum in Washington," the newspaper The Australian declared Monday, predicting significant damage to the global economy if the government can't pay its debts."

America is diminished by the standoff," the editorial continued. "Government shutdowns, debt defaults and the shenanigans witnessed in Washington have no place in the world's superpower." China, which is America's largest creditor with $1.28 trillion in U.S. treasuries, went as far as calling for a new world order — a "de-Americanized" model.

That may be an extreme reaction, but international economists and opinion-makers aren't holding back as they assess crisis. International Monetary Fund Managing Director Christine Lagarde told NBC News' Meet the Press that the prospect of default, combined with the government shutdown now in its 14th day, overshadowed its annual meeting.

"If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over and we would be at risk of tipping yet again into recession," she said.Anshu Jain, chief executive of Germany's Deutsche Bank, said blowing the Oct. 17 deadline would be "utterly catastrophic."

"There isn't life beyond default," he said at a financial-industry conference in Washington over the weekend. "This would be a very rapidly spreading, fatal disease." The governor of France's central bank, Christian Noyer, told Le Figaro that Washington's inability to pay its bills would be a "thunderbolt for the financial markets," and cause "extremely violent and profound" economic turbulence, according to Agence France Presse. 

There were complaints that while the Republican and Democrats in Washington were bickering with little regard for the dire consequences to other countries who depend on American stability. "World leaders are saying, 'Get on with it and get this resolved.

It's not just about you,'" Mike Kendall, executive director of JBWere, a private wealth management firm in Australia and New Zealand, told The Age of Melbourne. "This isn't the time to be tap dancing to the mid-term elections in the U.S. This affects everyone."

Meanwhile financial markets around the world are reacting to the ongoing impasse with fits and starts. The U.S. dollar fell on Monday while the Japanese yen rose on "safe-haven" demand. "The markets went home on Friday expecting a deal would be imminent.

While there's a heap of conciliatory language around, there's no deal yet," said Sam Tuck, currency strategist at ANZ Bank in Auckland."Now that we're in the week where the debt ceiling will be hit, the yen's gaining on safe-haven bids."

HD DOPPLER 6i
/
  • Top Stories from KHQHomeMore>>

  • Head-on crash kills 1, injures 8, when driver attempts to pass slow-moving vehicle on Hwy 95

    Head-on crash kills 1, injures 8, when driver attempts to pass slow-moving vehicle on Hwy 95

    Thursday, November 23 2017 3:28 PM EST2017-11-23 20:28:13 GMT

    SAGLE, Idaho - A fatal and serious injury head-on crash has killed one man and injured eight others, including five children, who all had to be transported to Kootenai Health. The crash occurred on Wednesday, November 22, the day before Thanksgiving, on Highway 95 at milepost 466.5, two miles south of Sagle, Idaho.

    More >>

    SAGLE, Idaho - A fatal and serious injury head-on crash has killed one man and injured eight others, including five children, who all had to be transported to Kootenai Health. The crash occurred on Wednesday, November 22, the day before Thanksgiving, on Highway 95 at milepost 466.5, two miles south of Sagle, Idaho.

    More >>
  • Sound heard in Argentine sub search could be explosion

    Sound heard in Argentine sub search could be explosion

    Thursday, November 23 2017 2:45 PM EST2017-11-23 19:45:18 GMT

    MAR DEL PLATA, Argentina (AP) - Argentina's navy announced Thursday that a sound detected during the search for a missing submarine is consistent with that of an explosion - an ominous development in the hunt for the vessel and its 44 crew members.   Navy spokesman Enrique Balbi said that the relatives of the crew have been informed and that the search will continue until there is full certainty about the fate of the ARA San Juan.

    More >>

    MAR DEL PLATA, Argentina (AP) - Argentina's navy announced Thursday that a sound detected during the search for a missing submarine is consistent with that of an explosion - an ominous development in the hunt for the vessel and its 44 crew members.   Navy spokesman Enrique Balbi said that the relatives of the crew have been informed and that the search will continue until there is full certainty about the fate of the ARA San Juan.

    More >>
  • Wind advisory with winds up to 55mph in effect until 5pm

    Wind advisory with winds up to 55mph in effect until 5pm

    Thursday, November 23 2017 2:19 PM EST2017-11-23 19:19:27 GMT

    KHQ.COM - It's is going to be a windy and wet Thanksgiving day! We are under a wind advisory for parts of the inland northwest in eastern Washington and N. Idaho from 11am - 5pm today. Gusts could get up to 55mph which is something you'll want to keep in mind if you're frying those turkeys outside. Sustained winds will be between 15 and 25mph. Winds are expected to peak between 1 and 3pm.

    More >>

    KHQ.COM - It's is going to be a windy and wet Thanksgiving day! We are under a wind advisory for parts of the inland northwest in eastern Washington and N. Idaho from 11am - 5pm today. Gusts could get up to 55mph which is something you'll want to keep in mind if you're frying those turkeys outside. Sustained winds will be between 15 and 25mph. Winds are expected to peak between 1 and 3pm.

    More >>