What happenned to USA, the most powerful and the richest country in the world, running out of cash and shutting down the government?

Ateneo Professor on Entrepreneurship


                     

Christine Lagarde of IMF warns of massive global disruption

At the IMF meeting, its President Christine Lagarde and the rest of the central bankers warned USA leaders of the dire consequences of their intransigence in passing the budget and debt limit law.  It will severely affect the finances of USA:  possible downgrade, increase of interest rates, currency devaluation, with severe consequences in developing countries who still heavily use the US dollar for trade and reserves.

As if IMF was talking down to a less developed  country like PHL?  But they are talking to the 2nd largest economy in the world (Lagarde said that - China is the largest now?)  USA was a very rich and powerful country.  And they seem to be helpless now in determining their own destiny and the rest of the world.  Democracy is wrecking havoc on its economy.

Of all the events in the world:  volcanic eruptions, cyclones in India, typhoon in the PHL, radiation from Fukushima nuclear reactors, this is the most worrisome.  It is going to affect the social and economic situation of millions of people around the world.  It worst than a  neutron bomb?

Has leadership something to do with this?  The bell tolls and the end will be on October 17;  many predict that running out of cash entirely for the US govt will kick in as early as that date.

Will the Republicans and Democrats care for their country and the rest of the world?

From Globe and Mail - IMF warning