setTimeout, setInterval, setWatch logic

As i understand it the Espruino doesn't multitask all watches, intervals and timeouts happen one after another. I encounter this when i tried to do a watch on a button when i made an infinite loop, woops. Somthing like this wouldn't work.

setWatch(function(){console.log("test");­}, BTN1, {repeat:true,edge:"rising", debounce:1/*ms*/});

while(1){

}