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A VIABLE COMPROMISE ?

 

July 13, 2011

Debt-ceiling talks continue as Moody’s warns

Boehner on U.S. default: ‘Nobody wants to go there’

 

The rating agency Moody’s Investors Service late Wednesday said it placed the U.S. government’s triple-A bond rating on review for possible downgrade because it fears “a small but rising risk” of a short-lived default. Read more in After Hours coverage

 

The politicians who are in position to prevent a default meanwhile inched forward on a deal to raise the $14.3 trillion debt ceiling and reduce the deficit.

 

Senate Democratic Leader Harry Reid on Wednesday lauded a proposal from his Republican counterpart to let President Barack Obama raise the debt ceiling on his own, in a sign that the debt-limit stalemate may be breaking. House Minority Leader Nancy Pelosi added the proposal by Senate Minority Leader Mitch McConnell, a Republican, has “merit.”

 

House Speaker John Boehner, for his part, said Wednesday nobody knows what would happen if the United States defaulted on its debts for the first time, and that it would be a “crapshoot.”

 

Speaking on the Senate floor, Reid called a proposal by McConnell “serious,” and the Nevada Democrat said he was “heartened” by the idea, which would allow Obama to raise the limit by $2.4 trillion in three installments before the end of 2012.

 

“I believe that the Republican leader’s proposal, combined with ideas he and I have been discussing to force a vote on deficit-reduction proposals, could go a long way toward resolving the impasse in which we find ourselves,” Reid said Wednesday morning.

 

/more: http://www.marketwatch.com/story/reid-praises-republican-debt-ceiling-proposal-2011-07-13?siteid=bigcharts&dist=bigcharts

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TICK-TOCK...

These clowns need to see a train wreck before they understand that a disaster is occuring

 

'Very real' risk of US rating drop as debt talks deadline looms

 

July 23, 2011

 

THE United States runs a "very real" risk of losing its top triple-A rating if nothing is done to reduce the ballooning deficit, says an official after debt talks collapsed.

 

Republicans in the House of Representatives abruptly closed the door on acrimonious negotiations with President Barack Obama on raising the $14.3 trillion US debt ceiling.

 

Republican aides said the talks had centered on a 10-year plan to cut $3-3.5 trillion from US debt.

 

In a letter to fellow House members, Republican House Speaker John Boehner said he was walking away because the Democratic president was insisting on increasing tax revenue collected from the rich and wealthy corporations.

 

The senior White House official, speaking on condition of anonymity, said the size of US debt - which stands at over $14,000 trillion, or nearly 100 per cent of GDP - also remains a serious concern.

 

"There's a very real prospect that the US will be downgraded not for failing to raise the debt limit, but for failing to take serious action to control our deficit," the official said.

 

Ratings agencies Standard & Poor's and Moody's have threatened the US with a downgrade if politicians cannot reach a deal to raise the debt ceiling by August 2.

 

Read more: http://www.news.com.au/business/very-real-risk-of-us-rating-drop-as-debt-talks-deadline-looms/story-e6frfm1i-1226100417846#ixzz1T0uuWpxS

 

589838-obama-boehner-debt-talks.jpg

 

"We have run out of time, and they are going to have to explain to me how we are going to avoid default," Mr Obama said Friday.

Mr Obama has warned that the Administration cannot guarantee that retirees will receive Social Security pension checks starting August 3 if Congress fails to raise the $US14.29 trillion ($13.2 trillion) borrowing limit by August 2.

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Apparently the date has been pushed out by 10 days or so because the treasury's outgoings were less than expected and incomings were greater than expected.

 

Ratings agencies Standard & Poor's and Moody's have threatened the US with a downgrade if politicians cannot reach a deal to raise the debt ceiling by August 2.

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These clowns need to see a train wreck before they understand that a disaster is occuring

 

'Very real' risk of US rating drop as debt talks deadline looms

 

snip

Republicans in the House of Representatives abruptly closed the door on acrimonious negotiations with President Barack Obama on raising the $14.3 trillion US debt ceiling.

 

Republican aides said the talks had centered on a 10-year plan to cut $3-3.5 trillion from US debt.

 

In a letter to fellow House members, Republican House Speaker John Boehner said he was walking away because the Democratic president was insisting on increasing tax revenue collected from the rich and wealthy corporations.

 

The senior White House official, speaking on condition of anonymity, said the size of US debt - which stands at over $14,000 trillion, or nearly 100 per cent of GDP - also remains a serious concern.

 

"There's a very real prospect that the US will be downgraded not for failing to raise the debt limit, but for failing to take serious action to control our deficit," the official said. snip

 

In other words Obama gets the blame no matter which way the disaster falls. Predictable, but still...has the world ever seen a scape goat for something of this magnitude before?

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In other words Obama gets the blame no matter which way the disaster falls. Predictable, but still...has the world ever seen a scape goat for something of this magnitude before?

 

I suspect, and I have always suspected that they didn't assign a black president for no reason....

 

BTW the term "scape goat" comes from the bible, as the Jewish high priest sacrificed a goat and sprinkled its blood on another goat which was set free in the wilderness, so as to take away the sin of the Israelites. So the goat took away the blame of the people and symbolised Jesus taking away the sins of the people. It was also known as the goat for Azazel, as it was believed that a fallen angel called Azazel was entombed in the desert according to the Book of Enoch. (which is not included in the bible although referred to by Jesus)

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In other words Obama gets the blame no matter which way the disaster falls. Predictable, but still...has the world ever seen a scape goat for something of this magnitude before?

 

Yes. Every time there is a Second Coming & 'He' fluffs it.

It's more common than you think.

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If the banks are all insolvent due to trillions in derivative exposure why don't TPTB order every derivative to be settled but with a maximum payout of $1?

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This is not another start of another freeze up or catastrophy.

 

It is the banks and the "powers that be", frightening the politicians into another round of QE.

 

It is Lehman all over again.

 

It is the financial institutions scaring the democtrats and republicans into QE3 and not facing upto austerity.

 

The votality we are seeing is engineered - there is nothing to see here.

 

De-ja bleeding vue.

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This is not another start of another freeze up or catastrophy.

 

It is the banks and the "powers that be", frightening the politicians into another round of QE.

 

It is Lehman all over again.

 

It is the financial institutions scaring the democtrats and republicans into QE3 and not facing upto austerity.

 

The votality we are seeing is engineered - there is nothing to see here.

 

De-ja bleeding vue.

 

The obfuscation is necessary to avert attention away from the inevitability of ever increasing debasement. People are dumb with short attention spans so it is not difficult to fool em.

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"Banks tap emergency BoE funds for first time in 2 years"

 

http://uk.news.yahoo.com/banks-tap-emergency-boe-funds-first-time-2-103322928.html

 

I have never heard this lending arrangement at the BOE called emergency lending. The BOE along with most other central banks uses a corridor system to keep interest rates stable where it usually pays interest on deposits at the boe at a rate less than the base rate and charges around .75% over the base rate to borrow with collateral where these two interest rates form an upper and lower limit to steady market interest rates.

 

Strange that they say the deposit facility has not been used since march 2009. It appears the case that the BOE has not paid interest on deposits at the BOE since the base rate was reduced to .5% on 5th march 2009

 

According to bloomberg the amount borrowed is very small at 3m per day and the reuters writer is mixing up the usual lending facility with the discount method where the boe allows banks to swap crap assets for government bonds.

 

http://www.bloomberg.com/news/2011-07-27/boe-sees-first-use-of-operational-lending-facility-in-two-years.html

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This is not another start of another freeze up or catastrophy.

 

It is the banks and the "powers that be", frightening the politicians into another round of QE.

 

It is Lehman all over again.

 

It is the financial institutions scaring the democtrats and republicans into QE3 and not facing upto austerity.

 

The votality we are seeing is engineered - there is nothing to see here.

 

De-ja bleeding vue.

 

It may all be carefully engineered to scare politicians but that does not mean there's nothing to see. I don't think the banks will shy from causing real pain to voters if that's what they think will get them what they want. I'm just glad I'm not dependent on any US Govt cheques, and I'm sorry that many who are probably have very little options for preparation.

 

From anyone reading this stateside, how is this whole drama being seen by the general public there - is there a genuine fear that some payments will not be made? In Europe it is just one in a series of economic headlines that people generally don't understand, but just know that it sounds bad.

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Tock...

I think you mean.... TICK

Read on zerohedge today that the B-man's plan will lift the ceiling for another four months. Awesome, four more

months to prepare.

 

Also the masses are waking up although it appears to be suppressed. Check out this article on the natural news website about

social media backlash against Washington or search Twitter for #FYW (a short version of #F&^*YouWashington).

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Now France is being dragged into global financial crisis as credit rating could be cut

 

France was dragged into the global financial crisis last night with warnings it could be stripped of its top-notch credit rating without ‘more efforts’ to tackle its debts.

The International Monetary Fund told Nicolas Sarkozy’s government that further spending cuts were needed for the country to hit its budget targets in the face of weak economic growth.

France is the second biggest economy in the Eurozone and a downgrade to its credit score would wreak havoc in financial markets and plunge the single currency deeper into crisis.

 

 

Read more: http://www.dailymail.co.uk/news/article-2019581/Now-France-dragged-global-financial-crisis-credit-rating-cut.html#ixzz1TNghXsBO

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Tick...

 

GF, I trust you have an image-in-waiting for the moment?

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Copyrighted_Image_Reuse_Prohibited_330353.jpg

 

Obama and Boehner seem to be playing poker with the devil. It's almost as if they want a default so they can score points by arguing that each other was the cause.

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