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.