Unless politicians agree a package by 2 August the US may be unable to pay its bills, triggering an economic crisis.
On Tuesday the dollar fell against the euro whilst US shares opened down.
But Ms Lagarde warned against drastic cuts in spending, saying these could create a “jobless recovery”.
Our reality: u haz it rite! Maybe she should have said it would mean even more job-lessness in our so-called “recovery?” In which case we must ask: what part of this reality is the “recovery,” and can we stage an intervention in Congress and in the White House already?