THE BIGGIE YET TO COME, BUT SOON...The Federal government shutdown is serious, but compared to a full federal default on our debt it is a piss in the sea. NO ONE can predict the international financial repercussions if the debt ceiling is not raised in time. Many computers world wide are pre-set on default in the event of an American default, i.e. they may trigger "sell" orders automatically. Humans may know that is not a "real" default. just American politicians being stupid, but computers acting automatically on "Program trading" could not make such a distinction. The results for world financial markets could be catastrophic, with an ensuing credit lockup that would make the 2008 financial collapse seem like small beans. The President could not take that chance. He will probably raise the debt ceiling by executive order, the so called "go it alone" option. This clearly contradicts the spirit if not the word of the U.S. Constitution, which clearly gives Congress the power of the purse (but makes no mention of a "debt limit" vote, because such a thing did not exist then), but given the dire possible outcome of a full U.S. default, he may go ahead and let it be fought out in the U.S. Supreme Court. If the Congress does not come to its sanity, we may have to pray for President Obama to act alone, love him or hate him. We have NEVER defaulted on our debt. The government shutdown which even though it makes us look stupid in the eyes of the world, does NOT involve the full faith and credit of the U.S. government and our currency. A default would be catastrophic, and what makes it even more scary is no one knows how catastrophic. We are now playing with gasoline near the fire. businessinsider/it-increasingly-looks-like-obama-will-have-to-raise-the-debt-ceiling-all-by-himself-2013-9
Posted on: Wed, 02 Oct 2013 00:41:51 +0000
Trending Topics
Recently Viewed Topics
© 2015