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Aug 2, US-living on borrow time from debt disaster

Ah Ben - standby QE 2.5 worth US$300 billions. then plan B may kick in again QE 2.51, QE 2.52 and so on...

Print more money as Ah Ben is seen as  neutral...credit rating kena knock down a knot. US$ weaker...

Any turbulence weekend, so is next week.

teeth53      ( Date: 26-Jul-2011 00:26) Posted: Meanwhile Ah Ben is thinking of this...Could the Fed Rescue US From the Debt Ceiling? http://www.cnbc.com/id/43879039 The Fed currently owns about $1.63 trillion of Treasurys. It can sell these through its open market operations . All Fed income that exceeds the Fed’s costs are remitted to the U.S. Treasury Department. Which means that the revenues from selling Treasurys could be used to fund government operations instead of borrowing. Sales of Treasurys by the Fed would not violate the debt ceiling laws, because the debt has already been issued. It is already counted against the debt ceiling. The U.S. government borrows around $125 billion each month. This means that, at least in theory, it is possible for the Fed to fully fund the borrowing needs of the U.S. government for nearly a year.

 

The mightest, the most powerful, now...Now -- Debt ceiling countdown.

America's in Debt Crisis.  Debt ceiling delay: " It would be a Gun shot self-inflicted wound"

NEW YORK (CNNMoney) -- It's very hard to see how this ends well.

eurekaw      ( Date: 29-Jul-2011 21:43) Posted: WASHINGTON -- President Barack Obama will make a statement at 10:20 a.m. Eastern on Friday about the status of the debt-ceiling negotiations, the White House said. House Republicans delayed a scheduled vote on a bill to reduce the deficit and lift the debt ceiling on Thursday night. The Treasury Department says the $14.3 trillion debt limit must be raised before Aug. 2 or the government will run out of money to pay bills.

 

WASHINGTON -- Senate Democratic Leader Harry Reid plans to bring a bill to raise the debt ceiling and cut the deficit to the Senate floor on Friday. Reid said he can't wait any longer for House Republicans to act on their own bill, which stalled in the House Thursday night. The Treasury says the debt ceiling needs to be raised by Aug. 2 or the U.S. won't be able to pay its bills. " The time has come to make a decision," Reid said.

 

US debt keeps on increasing without a suitable solution. 14.5 trillion currently. spend and spend more.


Source: Real time US national debt

 

WASHINGTON -- President Barack Obama will make a statement at 10:20 a.m. Eastern on Friday about the status of the debt-ceiling negotiations, the White House said. House Republicans delayed a scheduled vote on a bill to reduce the deficit and lift the debt ceiling on Thursday night. The Treasury Department says the $14.3 trillion debt limit must be raised before Aug. 2 or the government will run out of money to pay bills.

 

Then we can relish the juicy peak... 

 

 

who wanna bet. during the weekend all of a sudden they come up with a debt plan. 

Hulumas      ( Date: 29-Jul-2011 19:49) Posted: Be ready to about 5% fluctuation of STI around before and after 2nd August 2011! teeth53      ( Date: 28-Jul-2011 23:09) Posted: http://www.bloomberg.com/ House Debt-Limit Vote Sets Stage for Default Showdown, while - U.S. Stocks Climb on Economic Data

 

Dow kena hit by air turbulence, there after Aug 2, 2011. More air turbulence, and after come d sunshine. 

http://money.cnn.com/2011/07/29/markets/premarkets/index.htm?iid=Lead

STOCKS HEAD FOR SELL-OFF

9:03AM: Stocks set to fall at the open, after GDP came in at worse-than-expected 1.3%.  More

teeth53      ( Date: 27-Jul-2011 23:06) Posted: Bet on  U.S. default next week?,  betting  worth  $4.8 billion on a U.S. default..??. http://money.cnn.com/ (CNNMoney) -- Wall St is often likened to a big casino for obvious reasons. at least a few financial players are looking to cash in on such a bleak turn of events. A small camp of investors are betting that the U.S. government will default on its debt, and they're putting $4.8 billion of their chips on the table. In the event of a default, that's how much financial firms will have to pay out to investors who bought credit default swaps against the U.S. govt, according to figures from the Depository Trust and Clearing Corp.

 

Be ready to about 5% fluctuation of STI around before and after 2nd August 2011!

teeth53      ( Date: 28-Jul-2011 23:09) Posted: http://www.bloomberg.com/ House Debt-Limit Vote Sets Stage for Default Showdown, while - U.S. Stocks Climb on Economic Data

 

http://www.bloomberg.com/

House Debt-Limit Vote Sets Stage for Default Showdown, while - U.S. Stocks Climb on Economic Data

 

Eerie Coincidence or Engineered Fraud ?

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/draghi/tp%201_3.png

you decide ....

Cheer

 

A flash crash may be on  the way in these few days .... be careful ......

http://en.wikipedia.org/wiki/2010_Flash_Crash

especially those on NYSE


Cheer

 

Why and what's  happening now in U.S?.,

Here - not for the next five years, then again perhap (maybe, maybe not) in next coming 10, 20-30 years. S'pore may behave like U.S.

Sing (S$) dollar will be weak and worth alot less as we have perhap may have two or more parties jossing for power, money and greed.

“If you look at the incentives and disincentives faced by members of Congress, you can see why they do not want to take compromising positions,” said Gary Jacobson, a political scientist at the University of California in San Diego.
“They are playing to the people who got them there. Those people do want compromise. But by ‘compromise,’ they mean the other side caves in to them,” Jacobson said.

teeth53 said: A more balance govt with common sense will prevail...

" Now this govt morale is weak"

That right by any standard and comment...More Western style education is leading us and everyone, especially ordinary folks to think like angmo.

And leading us is western style leaderships, previously it is LKY said, everyone seem to follow.

Now due to more money pocketed by a few lions and by familee, the rich is becoming richer and poor be coming poorer.

It is income gap widening that is happening here and in every part of this world.

How are we to take on this challenge and tackle income gap widering..?.

" Singapore may have not spiral down, but many Singaporean lives had spiral down."

true, true, that true...

Short term challenge is to tackle cost of living....and tackle inflation rate.

 

U.S governing system it seem - not suit for S'pore

LKY governing system - it seen to promote more pocket money for lions and not sheeps.

Either way. We need to education his childrens, his grand and great grand  childrens and ours as well.

So far S'porean is still learning how best not to copy from the West nor East. One way is how our Finance Ministry is doing and some others country is copying from us...

teeth53      ( Date: 27-Jul-2011 23:37) Posted: Then again. In others words. Strong govt will see S'pore lions and ministries  pocket more money... teeth53 said: A more balance govt with common sense will prevail...

 

Then again.

In others words. Strong govt will see S'pore lions and ministries  pocket more money...

teeth53 said: A more balance govt with common sense will prevail...

 

Weak govt will see S’pore ‘spiral downwards’: Lee Kuan Yew

What LKY is saying now, does not happen now, maybe in future (who know - perhap it won't happen?) perhap about 20 -30 years time.

Party Loyalty Brings U.S. Debt Talks to Precipice

http://www.bloomberg.com/news/2011-07-27/party-loyalty-to-insecure-leaders-seen-bringing-u-s-to-default-precipice.html

President Barack Obama (democrat) told the nation in his July 25 televised speech that Washington “is a city where ‘compromise’ is becoming a dirty word.”

The ideological purification of the two parties.

The public’s demands for painless remedies and the insecurity of party leaders after three elections that shuffled partisan power are all elements that brought Congress (Republican), the president and the country to this perilous point.

“If you look at the incentives and disincentives faced by members of Congress, you can see why they do not want to take compromising positions,” said Gary Jacobson, a political scientist at the University of California in San Diego.

“They are playing to the people who got them there. Those people do want compromise. But by ‘compromise,’ they mean the other side caves in to them,” Jacobson said.

 

Bet on  U.S. default next week?,  betting  worth  $4.8 billion on a U.S. default..??. http://money.cnn.com/

(CNNMoney) -- Wall St is often likened to a big casino for obvious reasons. at least a few financial players are looking to cash in on such a bleak turn of events.

A small camp of investors are betting that the U.S. government will default on its debt, and they're putting $4.8 billion of their chips on the table.

In the event of a default, that's how much financial firms will have to pay out to investors who bought credit default swaps against the U.S. govt, according to figures from the Depository Trust and Clearing Corp.

 

Debt ceiling countdown - 6 days left.

U.S. stocks were poised for a flat open Wednesday, as lawmakers made little progress toward raising the debt ceiling with less than one week to go before the nation's borrowing limit must be lifted.  More

teeth53      ( Date: 24-Jul-2011 10:43) Posted: America's in Debt Crisis.  Debt ceiling delay: " It would be a Gun shot self-inflicted wound" Now -- Debt ceiling countdown. NEW YORK (CNNMoney) -- It's very hard to see how this ends well. On Friday, for the third time in a month, Republicans abandoned negotiations with the White House over how to reduce the country's medium and long-term debt in time to raise the nation's debt ceiling. On Saturday, Boehner told House Republicans in a conference call that he wanted to announce a solution to the impasse by Sunday afternoon before markets open in Asia, a GOP aide familiar with the call told CNN. It remains to be seen how investors, who have so far mostly watched but not acted on the debt ceiling debate, respond to the latest breakdown. teeth53 thot: The price to pay for is d one  who will run for top job of running the most powerful economy of a debt riddle country. Isit democrat, Mr Obama or the hopeful congress..?. Democrat lov democracy. Congress lov democracy. That how democracy work.

 

Think the deal done .....

but US gona lose its AAA rating after all......

http://moneymorning.com/2011/07/25/the-1-billion-armageddon-trade-placed-against-the-united-states/

Cheer

 

Meanwhile Ah Ben is thinking of this...Could the Fed Rescue US From the Debt Ceiling?

http://www.cnbc.com/id/43879039

The Fed currently owns about $1.63 trillion of Treasurys. It can sell these through its open market operations . All Fed income that exceeds the Fed’s costs are remitted to the U.S. Treasury Department. Which means that the revenues from selling Treasurys could be used to fund government operations instead of borrowing.

Sales of Treasurys by the Fed would not violate the debt ceiling laws, because the debt has already been issued. It is already counted against the debt ceiling.

The U.S. government borrows around $125 billion each month. This means that, at least in theory, it is possible for the Fed to fully fund the borrowing needs of the U.S. government for nearly a year.