President Barack Obama has warned of the “catastrophic consequences” that would follow a failure to raise the US national debt ceiling as IMF chief Christine Lagarde highighted the risk of a “major world economic crisis”.
by James Hurley and agencies
The Democratic president, who spoke on Saturday following this week’s 11th-hour deal that avoided the so called “fiscal cliff”, said he will “not compromise” on insisting that Congress raises the federal government’s debt ceiling.
He warned Republicans against playing a “dangerous game” with the economy.
“If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic,” he said.
“Our families and our businesses cannot afford that dangerous game again.”