Tag Archives: us debt limit

US default averted??

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All the hoopla “averted default” for the US…!!

The clock kept on ticking…and the US debt limit extension was near or was it not?? The media continued to add excitement, drama, frenzy and of course the possibility of “what if” a U.S. Government Default  or U.S.Default 2013??? Has the US default averted or postponed for another day?? Hollywood truly needs to add a nomination in 2014 during the Oscars for “best drama”..and the winner goes to…..US senate …”best supporting actor” US media.

This illusion that we continually see on mainstream media starts to get stale, GM bailout 2008 the list goes on. The real story behind these issues…U.S. senate loves to additional clauses in each passed bill. The bigger picture, the average U.S. citizen will shed the pain as we have seen currently with social services, food stamps etc. The apparent “averted default” will arise again in February 2014 where apparently the U.S. Debt limit expires once more.

Meaning of Averted : to ward off; prevent. Do we agree this has been averted..for now yes..but for a bigger mess later…? No matter how the “cookie crumbles” the U.S. economy is becoming scrutinized more than it has in history, as most empires experience during times of hardship. Every empire provides the same plan…weakened economy, appeal to the masses and bring on the games or distract from the real issues. The media has done a masterful job of that!

Did you think Tyson vs Holyfield match was a good rematch…how about his next round in 2014?? The overall picture for the United States of America will be …how long can this illusion continue and will the world economies plan to place the USD on the shelf and place another few basket of currencies as the mainly denominated reserve currency. With 2014 around the corner, US default averted or will continue… the financial world is evolving with mobile payments, bitcoin, Mint Chip..what is next for our monetary system??

 

 


US Debt ceiling

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US Debt ceiling looming in the next couple of days…..

U.S. Congress will be debating on September 30th 2013, to pass a federal budget pertaining to U.S. Debt 2013 and increasing the “US debt ceiling limit”. This scenario reminds me of U.S. Treasury Secretary Timothy Geithner plea to the senate back in January 2013 and to increase the “debt limit” …otherwise military salaries will be affected, Social Security payments etc.

Once again another Us Debt Crisis scenario is lurking behind the scenes…as the drama unfolds, similar to the FED debate to “taper or not” via the infamous “Bernhamlet”. The hype was building for months and what we found out, no tapering..for now??? This issue is identical, the US Federal Reserve Bank will not allow U.S. Congress to halt the “digital printing” press…as the U.S. economy cannot survive without the continual stimulus flow. Geithner, Bernhamlet, Yellen…the “song remains the same” as the famous line from Led Zeppelin. Status quo is here to stay and expect no change coming up this week.

Overall, if we assess the overall U.S. economy and the use of stimulus, by adding more to their debt has not changed U.S. government or administration policy. In fact, since 2008, the Big banks, Wall St have not changed their business model…if the Fed is not willing to change their monetary policy of continual injection…why would the world expect anything new from the U.S. Congress??

Regardless of how Moody’s rates the outcome…the bigger concern for the U.S. administration is how will the BRIC nations react? Currency wars are amongst us as Jim Rickards (author of the National bestseller “Currency Wars”) and how will those nations respond to this current U.S. issue?