The Guardian: Vince Cable (UK Government Business Secretary) has launched an extraordinary attack on “rightwing nutters” in America who are trying to block the raising of the US government’s debt ceiling and who are, he said, a bigger threat to the world economy than problems in the eurozone.
… He said: “The irony of the situation at the moment, with markets opening tomorrow morning, is that the biggest threat to the world financial system comes from a few rightwing nutters in the American Congress rather than the eurozone.”
Negotiations on raising the US government’s debt limit above its current level of $14.3tn (£8.7tn) collapsed in acrimony late on Friday over details of a package of spending cuts and tax rises that would help to pay for such a move.
A visibly angry Barack Obama attacked the Republican speaker of the house, John Boehner, for refusing to return his phone calls and said he had been “left at the altar” in trying to reach an agreement. Most experts agree that if the US were to default on its debt payments, stock and bond markets worldwide would plunge, threatening a new great recession. The deadline for agreement is just over a week away, on 2 August……