How Would A U.S. Default Affect The Global Economy?

05:03

October 14, 2013

Senate Majority Leader Harry Reid of Nevada, left, and Sen. Chuck Schumer, D-N.Y., speak to reporters about their meeting with Senate Republicans regarding the government shutdown and debt ceiling on Capitol Hill in Washington, Saturday, Oct. 12, 2013. (Charles Dharapak/AP)

With only three days left to avoid a potential default,world leaders are urging American lawmakers to reach a deal to extend the debt ceiling.

Over the weekend, IMF chief Christine Lagarde spoke on NBC's Meet The Press about the consensus among world financial leaders regarding the possible impact of a U.S. default: "If there is that degree of disruption," Lagarde told David Gregory, "that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession."

Andrew Hilton, director and joint founder of the Centre for the Study of Financial Innovation, told Here & Now's Jeremy Hobson he doesn't think there will be a default, but if there was, it would be "armageddon."

Guest

Andrew Hilton, director and joint founder of the Centre for the Study of Financial Innovation in London, England.

This segment aired on October 14, 2013.