Lagarde Sees Massive Disruption If Debt Ceiling Not Fixed

International Monetary Fund Managing Director Christine Lagarde said the congressional deadlock over the U.S. debt ceiling is threatening the U.S. and world economies and cautioned against “creative accounting” to avoid default.

“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over,” Lagarde said in an interview with NBC’S “Meet the Press” program about the impact of not raising the borrowing limit. “And we would be at risk of tipping, yet again, into recession.”