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Christine Lagarde, the new head of the International Monetary Fund, says if the United States doesn’t raise its debt ceiling, there will be quote “real nasty consequences” for the US and global economies. America is set to default on debt payments if they don’t raise the $14.3 trillion cap by August 2nd.

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French Finance Minister Christine Lagarde, has been named the FIRST woman to head the International Monetary Fund. She beat out Mexico’s Agustin Carstens for the top job – although an IMF statement said both candidates were perfectly qualified for the position. Lagarde’s appointment continues the long tradition of a European heading the IMF.

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New details of Dominique Strauss Kahn’s arrest have been released. Documents presented by the prosecution show that the former IMF chief initially told police he had diplomatic immunity when he was being detained. He later said he was not trying to invoke it but wanted to know if he needed a lawyer. Strauss Kahn’s immunity only would have applied if his crimes were related to official fund allocation.

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