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 10:42 PM EDT, Thu October 23, 2014
Successful launch of lunar orbiter, seen as a precursor for a planned mission to the surface of the moon, marks significant advance for the country's space program.
updated 3:15 PM EDT, Thu October 23, 2014
Cpl. Nathan Cirillo, shot while standing guard at Ottawa's National War Memorial, was known for his easygoing manner and smile.
updated 4:06 PM EDT, Wed October 22, 2014
Non-stop chatter about actress' appearance is nasty, cruel, hurtful, invasive and sexist.
updated 6:08 PM EDT, Thu October 23, 2014
CEO's 30-min Putonghua chat is the perfect charm offensive for Facebook's last untapped market.
updated 11:45 PM EDT, Thu October 23, 2014
Chinese leaders want less odd architecture built in the country.
updated 4:58 PM EDT, Wed October 22, 2014
Air New Zealand's new 'Hobbit' safety video stars Peter Jackson, Elijah Wood, elves and orcs.
updated 10:14 AM EDT, Thu October 23, 2014
A 15-year-old pregnant girl is rescued from slavery, only to be charged with having sex outside of marriage, shocked rights activists say -- a charge potentially punishable by death.
updated 11:33 PM EDT, Tue October 21, 2014
After sushi and ramen, beef is on the list of must-eats for many visitors to Japan.
updated 12:07 PM EDT, Mon October 20, 2014
Airports judged on comfort, conveniences, cleanliness and customer service.
updated 1:48 PM EDT, Wed October 22, 2014
Scientists use CT scans to recreate a life-size image of the ancient king.
updated 5:59 AM EDT, Wed October 22, 2014
Despite billions spent on eradicating poppy production, Afghan farmers are growing bumper crops, a U.S. government report says.
updated 6:21 AM EDT, Fri October 24, 2014
Each day, CNN brings you an image capturing a moment to remember, defining the present in our changing world.
Browse through images from CNN teams around the world that you don't always see on news reports.
ADVERTISEMENT