Skip to main content

U.S. shutdown disrupts Washington D.C. -- but what about rest of world?

By Richard Quest, CNN
updated 8:07 AM EDT, Thu October 10, 2013
STORY HIGHLIGHTS
  • The world is watching the U.S. and is worried about its debt crisis and possible default
  • A panel chaired by CNN's Richard Quest Thursday will discuss the issues
  • Countries including Spain, India and China could all be hit by the debt crisis
  • U.S. is in partial government shutdown and is also facing a default on its debts

Editor's note: Watch Quest Means Business on CNN International, at its new time of 20:00 GMT. Quest Means Business is presented by CNN's foremost international business correspondent Richard Quest. Follow him on Twitter.

Washington D.C. (CNN) -- The world is worried about the U.S. debt crisis. The president of the World Bank, Jim Yong Kim, told me on Wednesday the bank was "ready to go" with help for poor countries caught up in the backwash of the world's crises.

Interest rates will start to rise, capital will flow from emerging markets into safe haven currencies like the U.S. dollar and Swiss franc. In short, the rest of the world has a very real interest in what's happening in Washington D.C.

READ MORE: Shutdown is playing with fire

Roundtable: Obamacare still GOP's enemy?

In the global debate at the International Monetary Fund Thursday I have no doubt the panel, which includes India's new central banker governor Raghuram Rajan, will be concerned.

India's onion economics

Rajan has just raised interest rates because of the summer assault on India's currency by investors fleeing to safety. The prospect of a debt default by the U.S. will turn this into a flood.

Spain's brain drain problem

READ MORE: Spain's small businesses give economic hope

Spain's economy minister Luis de Guindos, also on the panel, must be worried about any U.S. slowdown that could stifle Spain's prospects of recovery.

And China's deputy central bank governor Yi Gang will surely have an eye on his country's $2 trillion in U.S. government securities. The bond market is likely to become more volatile as the uncertainty rises.

READ MORE: China's economic stumble has Asia worried

So, the world's finance ministers and central bank governors are like spectators watching a domestic dispute. They know, however, they will have to help pick up the broken pieces of china strewn about after the fighting ends.

I will let you know what they say, on Quest Means Business tonight.

ADVERTISEMENT
Part of complete coverage on
updated 7:42 AM EDT, Wed April 16, 2014
It was supposed to be a class trip to a resort island. Instead, the ferry capsized, turning the afternoon into a deadly nightmare.
updated 1:31 PM EDT, Wed April 16, 2014
It's hard not to be nervous, standing outside the Ebola isolation wards.
updated 8:58 AM EDT, Wed April 16, 2014
Ukraine says it's forces have regained control of an airfield from Russian separatists. Nick Paton Walsh reports.
updated 7:35 AM EDT, Wed April 16, 2014
An "extraordinary" video shows what looks like the largest and most dangerous gathering of al Qaeda in years.
updated 8:30 AM EDT, Mon April 14, 2014
Explore each side's case, reconstructed from Pistorius' court affidavit and the prosecution's case during last year's bail hearing.
updated 5:16 PM EDT, Mon April 14, 2014
Officials are launching their next option: an underwater vehicle to scan the ocean floor.
updated 1:53 PM EDT, Wed April 16, 2014
How are police preparing for this year's 26.2-mile marathon, which takes place Monday?
updated 1:02 PM EDT, Tue April 15, 2014
Katrina Karkazis
Romance is hard, for anyone. For people with intersex traits, love poses unique challenges.
updated 8:38 AM EDT, Wed April 16, 2014
Suisse's Belinda Bencic returns the ball to France's Alize Cornet during the second match of the Fed Cup first round tennis tie France vs Switzerland on February 8, 2014 at the Pierre de Coubertin stadium in Paris. AFP PHOTO / KENZO TRIBOUILLARD (Photo credit should read KENZO TRIBOUILLARD/AFP/Getty Images)
It's no easy matter becoming a world class tennis player. It's even harder when everyone (really -- everyone) is calling you the "new Martina Hingis".
updated 5:26 PM EDT, Wed April 16, 2014
The "kill switch," a system for remotely disabling smartphones and wiping their data, will become standard in 2015.
updated 12:32 PM EDT, Wed April 16, 2014
Browse through images you don't always see on news reports from CNN teams around the world.
updated 2:51 PM EDT, Tue April 15, 2014
Sky gazers caught a glimpse of the "blood moon" crossing the Earth's shadow Tuesday in all its splendor.
updated 11:09 AM EDT, Tue April 15, 2014
A staff stands next to the propellers of Sun-powered plane Solar Impulse 2 HB-SIB seen in silhouette during its first exit for test on April 14, 2014 in Payerne, a year ahead of their planned round-the-world flight. Solar Impulse 2 is the successor of the original plane of the same name, which last year completed a trip across the United States without using a drop of fuel. AFP PHOTO / FABRICE COFFRINI (Photo credit should read FABRICE COFFRINI/AFP/Getty Images)
This solar-powered aircraft will attempt to circle the globe next year.
ADVERTISEMENT