HuffPost : New International Monetary Fund chief warns U.S. on Debt : Christine Lagarde, IMF Chief, asks U.S. to raise Borrowing Limit : "Real nasty consequences for the U.S. and global economies if the U.S. fails to raise its borrowing limit"

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Huffington Post
Christine Lagarde, IMF Chief, Asks U.S. To Raise Borrowing Limit
By CHRISTOPHER S. RUGABER
July 10, 2011


Christine Lagarde, IMF Chief, Asks U.S. To Raise Borrowing Limit


Some excerpts :

Christine Lagarde, the first woman to head the lending institution, said in an interview broadcast Sunday that it would cause interest rates to rise and stock markets to fall. That would threaten an important IMF goal, which is preserving stability in the world economy, she said.

The U.S. borrowing limit is $14.3 trillion. Obama administration officials say the U.S. would begin to default without an agreement by Aug. 2.

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President Barack Obama and congressional leaders from both parties planned to meet Sunday evening at the White House to resume negotiations on a debt deal.

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House Speaker John Boehner, R-Ohio, said Saturday that the talks should aim to reduce the deficit by about $2 trillion over 10 years. That's about half the size of a more ambitious deal that Obama floated last week.

Republicans are insisting on deep spending cuts as a condition of voting in favor of raising the debt ceiling. Obama and congressional Democrats are insisting that more tax revenue should be part of the mix.

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