Anxious planet hopes for US shutdown solution
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more at:
http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
The effects of the dramatic spending freeze have rippled around the globe, paralysing a leading earthquake alert system, forcing American scientists to pull out of international conferences and leading an embarrassed President Barack Obama to postpone visits to two Asian countries.
In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned. The Indian Express newspaper called it a "depressingly familiar chicken dance".
In Japan the Nikkei business daily lamented a "pointless political conflict". In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned.
The Indian Express newspaper called it a "depressingly familiar chicken dance". In Japan the Nikkei business daily lamented a "pointless political conflict".
In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned.
The Indian Express newspaper called it a "depressingly familiar chicken dance". In Japan the Nikkei business daily lamented a "pointless political conflict".
In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
Anxious planet hopes for US shutdown solution
- AFP
- October 04, 2013
Anxious planet hopes for US shutdown solution
FROM Chinese bloggers to European central bankers, the world is watching the US government shutdown with a mixture of bewilderment and growing nervousness that any debt default could hit struggling economies. The effects of the dramatic spending freeze have rippled around the globe, paralysing a leading earthquake alert system, forcing American scientists to pull out of international conferences and leading an embarrassed President Barack Obama to postpone visits to two Asian countries.
In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned. The Indian Express newspaper called it a "depressingly familiar chicken dance".
In Japan the Nikkei business daily lamented a "pointless political conflict". In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
FROM
Chinese bloggers to European central bankers, the world is watching the
US government shutdown with a mixture of bewilderment and growing
nervousness that any debt default could hit struggling economies.
The effects of the dramatic spending freeze have rippled around the
globe, paralysing a leading earthquake alert system, forcing American
scientists to pull out of international conferences and leading an
embarrassed President Barack Obama to postpone visits to two Asian
countries.In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned.
The Indian Express newspaper called it a "depressingly familiar chicken dance". In Japan the Nikkei business daily lamented a "pointless political conflict".
In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
FROM
Chinese bloggers to European central bankers, the world is watching the
US government shutdown with a mixture of bewilderment and growing
nervousness that any debt default could hit struggling economies.
The effects of the dramatic spending freeze have rippled around the
globe, paralysing a leading earthquake alert system, forcing American
scientists to pull out of international conferences and leading an
embarrassed President Barack Obama to postpone visits to two Asian
countries.In emerging superpower China, the official Xinhua news agency said the situation had once again brought to the fore "the ugly side of partisan politics in Washington".
"Though its immediate impact looks limited, the damage will multiply if the drama drags on for days or even weeks, arousing concerns over its spillover effect," it said in a commentary.
Chinese social media users took a largely mocking tone in response to the first US government shutdown in 17 years.
"Shutdown! What about the money China put in there?" posted one user on Sina Weibo, China's Twitter, a reference to Beijing's purchases of US Treasury debt.
While global markets have so far been relatively resilient, there are growing jitters about the impact on the US economy at a time when there is heightened uncertainty over a possible winding-down of the Federal Reserve's massive stimulus measures.
Apart from reaching a budget deal to end the shutdown, congress must agree within two weeks to raise the $US16.7 trillion ($17.8 trillion) debt ceiling or risk a default on government debt - with potentially far wider effects than the shutdown.
"If the US actually defaults on its debt, that might send a signal to markets that the US is no longer a credible borrower, and given how much debt there is sloshing around in the American system, that could be catastrophic," said David Smith, a lecturer at Sydney University's United States Studies Centre.
There were signs of mounting nervousness in emerging economies that have borne the brunt of recent market jitters over the expected tapering of US quantitative easing.
The US 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", Philippines Finance Secretary Cesar Purisima said.
He appealed to Washington to resolve the stalemate over raising the debt ceiling, a particular concern to Asian countries including China and Japan, major holders of US Treasuries.
"A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Mr Purisima warned.
The Indian Express newspaper called it a "depressingly familiar chicken dance". In Japan the Nikkei business daily lamented a "pointless political conflict".
In Europe finance chiefs expressed concern about the threat to the fragile recovery.
- See more at: http://www.theaustralian.com.au/news/world/anxious-planet-hopes-for-us-shutdown-solution/story-e6frg6so-1226732535114#sthash.Amufm2sY.dpuf
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