"World shivers with fear as US heads for new debt crisis."

Guardian: “Without a budget in place, the US government has run out of the cash needed to pay thousands of government workers in Washington and keep national parks open. But this week an even more critical issue comes to the fore. On Thursday, the country could be forced to default on its borrowings if it does not secure a rise in the $16.7 trillion debt ceiling.”
“Republican leaders, aware that their intransigence over the budget has hit the party’s popularity, last week proposed a six-week postponement of the deadline. John Boehner, leader of the Republicans in the House of Representatives, has dropped a previous demand that talks could only take place following a Democrat concession to review President Barack Obama‘s Affordable Care Act – or “Obamacare” – although a format for discussions has yet to be agreed.
The road towards a default that would risk plunging the world economy into recession began last year in the wake of Obama’s return to the White House. The radical Tea Party wing of the Republicans decided that the only way to block Obamacare, which for them exemplifies hated “big government”, was to hold up the president’s entire budget plan.
….The Chinese are panicked. China’s Xinhua news agency labelled US domestic politicians “dangerously irresponsible” for wrangling over debt. In an editorial, the state-run media organisation said the rest of the world had been “kidnapped” by American politics, which was involved in “a game of chicken”. The Germans are also anxious. Anton Böner, president of the Federal Association for German Wholesalers and Foreign Trade, warned: “If the Americans shoot themselves in the foot right now, it is highly dangerous for the entire global economy, and of course for the German export economy.”