The ramifications of the continued U.S. government shutdown are shaking up confidence in the economic climate worldwide. The Economic Times reported on Oct. 13, 2013, "IMF chief Christine Lagarde warns against drastic US spending cuts." International Monetary Fund Director Christine Lagarde has warned U.S. spending cuts must not be too drastic or they could threaten the global economic recovery.
Lagarde has said that the United States must address its spending on social programs such as Medicare and Social Security. However, she warned that the U.S. should not contract the economy by cutting spending brutally now, as the recovery is picking up. Lagarde added, "The pace of consolidation has to be sensible in order to protect that growth which is generating jobs, and which is helping in all sorts of ways."
The International Business Times has reported, "IMF Director Christine Lagarde Says Finance
Ministers Show Growing Concern Over U.S. Economy." Lagarde has warned that the U.S. fiscal problems are troubling the entire world. Lagarde said on NBC's "Meet the Press" on Sunday, “It’s very concerning. The world was doing better." Than the U.S. government closed down and there was no remedy in site. And so it appears unless the U.S. government can get it's house in order soon the economy worldwide could collapse and we could even witness another Great Depression.