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."

  • Top Stories from KHQTop StoriesMore>>

  • Two vehicle crash hospitalizes five, including one child

    Two vehicle crash hospitalizes five, including one child

    Friday, August 1 2014 1:22 AM EDT2014-08-01 05:22:39 GMT
    SPOKANE, Wash.- Right now Spokane Police and Washington State Patrol troopers are responding to a two-vehicle crash at East Trent and North Napa. Five people were injured in the crash, including one child. We do not know the extent of the injuries, but all five were taken to the hospital. Crews tell us that it appears a black SUV ran a red light and t-boned a black car. .More >>
    SPOKANE, Wash.- Right now Spokane Police and Washington State Patrol troopers are responding to a two-vehicle crash at East Trent and North Napa. Five people were injured in the crash, including one child. We do not know the extent of the injuries, but all five were taken to the hospital. Crews tell us that it appears a black SUV ran a red light and t-boned a black car. .More >>
  • Candlelight vigil held for both husband and wife in murder-suicide

    Candlelight vigil held for both husband and wife in murder-suicide

    Friday, August 1 2014 12:39 AM EDT2014-08-01 04:39:58 GMT
    Chris and Sheena HendersonChris and Sheena Henderson
    SPOKANE, Wash.- Thursday night there was a candlelight vigil held for Chris and Sheena Henderson in Franklin Park. The vigil was overseen by a Spokane Police Chaplain. He said that today's vigil was about hope, help, healing, and ultimately, forgiveness.On July 8th, Spokane police say 37-year-old Chris Henderson went to the Deaconess Medical Center complex where his wife, 30-year-old Sheena Henderson, worked and shot her multiple times. He then fatally shot himself. No one else was hurt.More >>
    SPOKANE, Wash.- Thursday night there was a candlelight vigil held for Chris and Sheena Henderson in Franklin Park. The vigil was overseen by a Spokane Police Chaplain. He said that today's vigil was about hope, help, healing, and ultimately, forgiveness.On July 8th, Spokane police say 37-year-old Chris Henderson went to the Deaconess Medical Center complex where his wife, 30-year-old Sheena Henderson, worked and shot her multiple times. He then fatally shot himself. No one else was hurt.
    More >>
  • Woman breaks record by swimming across Lake Pend Oreille

    Woman breaks record by swimming across Lake Pend Oreille

    Thursday, July 31 2014 10:05 PM EDT2014-08-01 02:05:34 GMT
    SANDPOINT, Idaho- It took nearly twenty-hours, but one woman broke a record by swimming the distance of Lake Pend Oreille.Elaine Howley left Button Hook Bay in Bayview Wednesday night a little before eight in the evening and swam all through the night, finishing Thursday around 4 o'clock.More >>
    SANDPOINT, Idaho- It took nearly twenty-hours, but one woman broke a record by swimming the distance of Lake Pend Oreille.Elaine Howley left Button Hook Bay in Bayview Wednesday night a little before eight in the evening and swam all through the night, finishing Thursday around 4 o'clock.
    More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KHQ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.