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 10:43 AM EDT, Tue October 28, 2014
A captured fighter tells CNN's Ivan Watson: "They gave us drugs... that made you go to battle."
updated 9:31 AM EDT, Wed October 29, 2014
A terminally ill woman who plans to take her own life checks off the last item.
updated 7:40 PM EDT, Thu October 30, 2014
In a plot straight out of Hollywood, federal agents gain access to a suspected Triad boss' Vegas hotel room by pretending to fix the Internet connection.
updated 12:34 AM EDT, Fri October 31, 2014
Was it only black and Latino men who harassed a woman in NYC? The filmmaker has found himself in a race controversy.
updated 10:15 AM EDT, Fri October 31, 2014
The history of human rights often overlooks the struggles of gay people. This must change.
updated 9:15 PM EDT, Wed October 29, 2014
Armed with Kalashnikovs and chanting for the dead comrades, women are among ISIS' most feared enemies. They are fighting for their families -- and now they are getting U.S. help.
updated 8:46 AM EDT, Tue October 28, 2014
Lere Mgayiya put his best foot forward and set up a shoe-shine firm after his career plans fell flat.
updated 1:28 AM EDT, Thu October 30, 2014
One Chinese drone manufacturer wants to take away the warmongering stigma of "drones."
updated 11:12 PM EDT, Wed October 29, 2014
Sketcher Luis Simoes is traveling the world -- slowly. And he's packed his sketchbook.
updated 4:43 PM EDT, Tue October 28, 2014
European states help North Korea's brutal treatment of its people by allowing luxury goods like cars and cognacs to evade sanctions, two experts say.
updated 11:45 PM EDT, Thu October 23, 2014
Chinese leaders want less odd architecture built in the country.
updated 7:04 AM EDT, Fri October 31, 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