asterisk2a + debtceiling   15

Debatte um die US-Schuldenobergrenze: Schlüsse für Privatanleger - SPIEGEL ONLINE
"Vertrauen ist das Fundament der Rolle des US-Dollars als Weltleitwährung. Daher erlaubt das Top-Rating der USA auch ein höheres Schuldenniveau als das anderer Staaten", schreibt etwa die Rating-Agentur Fitch. An der höchsten Rating-Note drehe man nur im Falle eines echten Zahlungsausfalls, gab Moody's 2011 bekannt und hat diese Meinung bis heute nicht verändert. Und auch Standard & Poor's gibt sich lässig und lässt wissen, ein Tanz am Abgrund wie derzeit sei ja der Grund gewesen, warum man die USA vor zwei Jahren leicht herabgestuft hätte. Alle drei verweisen zudem auf das seit 2009 halbierte Defizit.
debtceiling  Career  Politicians  fiatmoney  complexity  financial  market  barackobama  fiat  money  political  folly  policy  error  policy  folly  2013  complacency  creditrating  trust  fiat  currency  budget  deficit  confidence  political  error  trustagent  USA  unknown  unkown  WallStreet  global  imbalances  ratingagencies  Dollar  presidency  faultlines 
october 2013 by asterisk2a
▶ Dan Mitchell testifies on the debt ceiling in front of the Joint Economic Committee on C-SPAN 3 - YouTube
private sector is a tax base/revenue stream. as well as resources like land, oil, dams, fracking. gov has a conflict of interest in terms of regulation and taxation - long-term thinking diminished to zero plus influenced by lobby.
debtceiling  2013  Politics  fiscal  sovereignty  short-term  thinking  economic  history  fiscal  policy  Debt  Super  Cycle  fiscal  discipline  budget  deficit  fiscal  stimulus  sovereign  crisis  USA  default  barackobama  treasury  democracy  ceiling  presidency  fiscal  deficit 
september 2013 by asterisk2a
VINCENT REINHART: If There's No Debt Ceiling Deal, The Treasury Will Have To Break At Least One Of Three Laws - Business Insider
Morgan Stanley's Vincent Reinhart is on BloombergTV, talking some sense about the debt ceiling with Tom Keene.
One of his points is that the belief in 11th hour deals has become such a big cliche that markets may never react and apply the force needed to get a deal, and so that's worrisome.
But furthermore, he says that if there's no debt ceiling hike, The Treasury will have to break one of three laws:
-- It will have to break the budget law, not making payments that are guaranteed by law.
-- It will have to ignore the Second Liberty Bond Act of 1917 (which established the debt ceiling).
-- It will have to violate the current Fed law, by getting overdraft protection.
This last point is interesting, but seems the least likely. Theoretically the Fed is able to provide overdraft protection to the Treasury, but its legality would be in doubt, and the Fed probably won't do it.

Politics  USA  Fiscal  Cliff  debtceiling  2013  presidency  barackobama  sovereign  debt  crisis 
january 2013 by asterisk2a
Will Latest Market, Credit Woes Add Up to a 'Global Recession'? - YouTube
- downgrade in confidence, stat gov is not able to prop up economy if needed- downgrade in confidence, after gov debt ceiling debate ended with austerity shaped bill (compromise)- downgrade in confidence, after Obama could not show leadership in debate and give boundaries
- government, and other institutions (Fed, SEC, Banks, Individual) failed
- growth panic
- no leadership on both sides of the Atlantic
- slow growth below long-term average guaranteed in developed markets whose bubbles burst 
- wrong medicine currently administered 
- currently, QE, monetization does not lead into healthier moneysupply in UK, USA, EU. bc of debt overhang and deleveraging process - which will still take years.
KennethRogoff  GFC  paulkrugman  2011  greatrecession  barackobama  presidency  monetary  fiscal  policy  politics  mistake  folly  sovereign  debt  ceiling  debtceiling  crisis  August  PIIGS  Fed  ECB  economy  recovery  GDP  growth  QE  QE3  debtoverhang  inflation  deflation  deleveraging  Japan  lostdecade  history  lesson  liquidity-trap  greatdepression  austerity  unemployment  output-gap  moneysupply  monetization  BOE  UK  europe  USA 
august 2011 by asterisk2a
Obama Is Too Good for Us: Charles Fried on the Debt Fiasco - The Daily Beast
The debt deal fiasco proved that any decent, honest politician like the president simply doesn’t stand a chance against the likes of Michele Bachmann. Charles Fried on how the Tea Party ruined America.

Look at the roster of leaders vying for my party’s nomination. At the top of the list stand Mitt Romney, who will say anything, and Michele Bachmann, who assured us that defaulting on the national debt is no big deal, while a sensible man like Jon Huntsman is in single digits.
Oh, I know: it’s not funny, but one must either laugh or weep.
presidency  barackobama  teaparty  politics  USA  2011  debtceiling  debate  sovereign  debt  crisis  economy  agenda  republicans  democrats  budget  2012  election 
august 2011 by asterisk2a
Another Deal Older and Deeper in Debt Currency Thoughts
 Politicians failed to segregate what needs to be done in the long term from what ought to be  addressed in the short term and, as a result, got both tasks wrong.

Below are ten consequences I expect from the Federal government’s latest handiwork. Obama will probably be a one-term president.
The increasingly skewed distribution of U.S. wealth and income will become even more so.  Because of the diminishing marginal utility of money, this trend dampens the potential growth rate of aggregate personal consumption.
presidency  barackobama  debtceiling  debate  2011  sovereign  debt  crisis  politics  democrats  republicans  policy  folly  wealth  income  inequality  poor  rich  wealth-distribution  USA  economy  greatrecession  recovery 
august 2011 by asterisk2a
Opening Bell: 08.02.11 Dealbreaker: Wall Street Insider Financial News, Headlines, Commentary and Analysis Hedge Funds, Private Equity, Banks
Putin Says US Is ‘Parasite’ On Global Economy (Reuters)“They are living beyond their means and shifting a part of the weight of their problems to the world economy,” Putin told the pro-Kremlin youth group Nashi while touring its lakeside summer camp some five hours drive north of Moscow. “They are living like parasites off the global economy and their monopoly of the dollar,” Putin said at the open-air meeting with admiring young Russians in what looked like early campaigning before parliamentary and presidential polls.
putin  russia  usa  foreignaffairs  debtceiling  sovereign  debt  crisis  ceiling  2011  presidency  barackobama 
august 2011 by asterisk2a
"Down To The Wire": Oakree's Howard Marks Takes On The US Debt Ceiling | zero hedge
One of the most striking aspects of debt in the modern era is that little if any attention is paid to repayment of principal. No one pays off their debt. They merely roll it over . . . and add to it.

The world has awakened to the undesirability of ever-growing government debt. Repairing the situation will require difficult decisions and great sacrifices, especially on the part of lawmakers required to vote for unpopular solutions. This would be a great time to start taking positive steps.
USA  sovereign  debt  debtceiling  fraud  PIIGS  Greece  politics  policy  folly  accountability  crisis  bubble 
july 2011 by asterisk2a
Hank "3 Page Blank-Check Term Sheet" Paulson Issues First Mutual Assured Destruction Statement Since Retirement | zero hedge
“Now is the time for action on both raising the debt ceiling and tackling the U.S. debt and deficits through significant and lasting spending reduction, entitlement reform and tax reform. Our growing debt is the single largest threat to our nation’s future. Real reform that puts us on a sustainable fiscal path is critical to U.S. economic competitiveness. This is not an easy task, and will involve tough decisions on all sides. I am confident that this administration and Congressional leaders in both parties are working in good faith toward a solution. And the sense of urgency is clear – failing to raise the debt ceiling would do irreparable harm to our credit standing, would undermine our ability to lead on global economic issues and would damage our economy.”
henrypaulson  debtceiling 
july 2011 by asterisk2a
Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach | zero hedge
the Treasury was forced to "disinvest" another $20 billion from retirement funds. At this point the various funds that fall under this umbrella are underinvested by at least $120 billion and likely much more. Of course, this is not an event of default as per Geithner's fine print: as soon as the debt ceiling is hiked, these will be the first funds that are replenished. On the other hand, if there is no debt ceiling hike, and courtesy of marketable debt having priority to intragovernmental debt, government retirees are increasingly becoming the impaired class in what may be shaping up to be the world's biggest bankruptcy filing in history.
2011  debtceiling  sovereign  debt  crisis  pension  USA  fraud  politics  responsibility  accountability  timgeithner  presidency  barackobama 
july 2011 by asterisk2a

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