What The World Is Saying About Shutdown | Top 5 Things to Know

The ongoing budget standoff in Washington has riled foreign markets and leaders who want an end to the battle. It’s the job of the executive branch, or course, to handle relations with foreign leaders, but right now, it doesn’t seem like they’re listening. According to TimeGene Sperling, the Director of the National Economic Council, told Time negotiations with Republicans “would increase, not decrease the chances that we and our country would default.” Foreign officials, we bet, disagree. Here are the top five international reactions to the U.S. government shutdown:

 

    1. Proof The U.S. Has Been Living Beyond Its Means. According to CNN, British Member of Parliament Douglas Carswell said, “For a generation or so, the American government has been living far beyond its tax base, with deficits since 1970 in all but four years. In 2010, it spent $1,900 billion more than it collected in tax – borrowing more than the entire GDP of Canada or India just to pay the bills. If the federal deficit has come down since then, total public debt is now well over 100 per cent of GDP, compared to less than 60 percent in the early noughties.”
    2. “Political Game Of Chicken” Is Wrong. Philippine Finance Secretary Cesar Purisima said the shutdown “is highly unfortunate for the rest of the world, as even countries like the Philippines are taken on a wild economic ride because of the political game of chicken in Washington.”
    3. Germany And Britain: Beware Of Traveling To The U.S. The Times of India reports, “Germany and Britain became the first countries to issue a ‘travel warning’ for the United States … The German foreign ministry notification on what it called Verwaltungsstillstand (government shutdown) notified travelers of possible longer wait times at passport control and other inconveniences, including closure of many historic sites and national parks. ‘Air traffic control, security and immigration processes are not currently expected to be disrupted, but delays may occur,’ the British travel advisory said.”
    4. Country That Finances Most Of U.S. Debt Is Worried; Need A Timely Solution. China is the U.S.’s “largest creditor” and the country is very worried. Chinese Vice Finance Minister Zhu Guangyao said, “We ask that the United States earnestly takes steps to resolve in a timely way before October 17 the political (issues) around the debt ceiling and prevent a U.S. debt default to ensure safety of Chinese investments in the United States and the global economic recovery…This is the United States’ responsibility.’”
    5. Need A Solution, Otherwise Could Harm Recoveries Underway In Other Countries. Politico reports, “The governor of the Bank of Japan, Haruhiko Kuroda, said last week that the standoff in Washington could seriously hurt Japan’s fragile recovery. ‘If this [budget deadlock] continues for a long time, it could destabilize financial markets and worsen sentiment,” Kuroda said, according to reports. ‘We sincerely hope a solution is reached at an early date,’ Kuroda added.” Politico also reports Swiss National Bank Chairman Thomas Jordan said he hoped the U.S. would “find a solution before the [debt limit] time limit … We saw the last time it can really have very negative impacts on international financial markets.”

 

 

See our analysis of how the government shutting is playing on Twitter. And tweet your thoughts on the shutdown to @BankruptingAm.

This article was posted to Economy category.

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