US default day Aug 2

[Canadian-guerilla]

Republicans walk out of budget talks over taxes

An agreement would give lawmakers political cover to raise the $14.3 trillion debt ceiling before August 2, when the Treasury Department has said it will run out of money to pay the country's bills.

Default could occur if Congress does not act by then, which could push the United States back into recession and send markets plunging around the globe.

more . . .

http://news.yahoo.com/s/nm/20110623/pl_nm/us_usa_debt_cantor%3B_ylt%3DAh_UuAfrIBPdU3DiTYsHUq Ks0NUE%3B_ylu%3DX3oDMTNtMTZrZDhqBGFzc2V0A25tLzIwMT EwNjIzL3VzX3VzYV9kZWJ0X2NhbnRvcgRjY29kZQNtb3N0cG9w dWxhcgRjcG9zAzcEcG9zAzQEcHQDaG9tZV9jb2tlBHNlYwN5bl 9oZWFkbGluZV9saXN0BHNsawNiaWRlbmRlYnR0YWw-

[Plastic]

Was'nt that the idea though? Let the $ and stock market go into freefall so the people demand QE3 or some such nonsensical excrement.

[Horn]

I though the idea was to screw the bond holders & start printing greenbacks?

[Canadian-guerilla]

Debt-limit delay would jeopardize Social Security payments

WASHINGTON — Social Security payments to millions of retirees and people with disabilities could be threatened if President Obama and Congress can't agree to increase the government's debt limit by Aug. 2, a new analysis shows

more . . .

http://www.usatoday.com/news/washington/2011-06-28-debt-limit-impasse-Congress-Obama-Social-Security_n.htm?csp=24&kjnd=CXqz5jblO77nsdu3BH%2FPaaCjvHShC%2FcqAKSl%2BDA 8%2FmmIOe2%2BkjjLU5lf5L8NEEYP-57591e6d-62e7-42fa-8cac-f4a973ce632b_u3XqUoYwwHtptVDGhs4o0fRZSBnnlfKcmTAXO Ewb8SR5js97hInLx%2BYUK6lVvtLS

[chad]

i read today on huffpo that dem lawmakers are working to challenge the constitutional validity of the debt ceiling provision, and that they will move to have obama argue it is unconstitutional and raise the ceiling via executive order.

[Buddha]

Doesn't it go something like... "All the world's a stage, and the people merely actors..."

[palani]

U.S. has already defaulted. If memory serves they declined further interest payments on 30 year U.S Treasury bonds after 20 years. The bonds carried very low interest rates (9-10%) when they were issued in the late '70s and early '80s. This was a period when interest rates were hanging around 15%. This default is frequently overlooked but set a precedent for the future.

Another precedent was the Gramm-Rudman Hollings Budget Balancing Act ... in which the federal government decided it could dishonor its contracts based upon the size of its budget deficit. If you happened to be a federal contractor with a negotiated contract, the amount that you were paid was guaranteed to be less than the negotiated amount under this act.

States are told not to interfere with the obligations of contracts. Not so the feds. ALL bankruptcy actions are federal for this reason. The feds are permitted to be irresponsible because there is no law that says they must be responsible.

[Hatha Sunahara]

There is no man-made law that says the feds must be responsible. But there is natural law, or God's law as some call it. When you break these laws, the punishment comes naturally. If the feds act irresponsibly, they will pay for it by reduction of their power and credibility. They will give license to everyone to act irresponsibly.

Hatha

[gunDriller]

precious metals industry wise, there is the making of one awesome Summer of Volatility ! ... if you like volatility.

the change in options trading rules on about July 15.

and whatever is going to happen about the debt ceiling.

not to mention release of 2nd quarter results starting soon after the July 4 weekend.


right now i think they will probably raise the debt ceiling. but i think there's a good chance the Repub's will hold out until about August 2 - remember they are trying to appear fiscally responsible ... though i haven't heard them say anything about cutting aid to Israel, or cutting US defense spending in half (which would still leave the US with the world's largest military).

[chad]

i was just listening to obama's press conference. one of the reporters asked him about the issue in my previous post (r.e. was he going to declare debt limit unconstitutional + make executive order). he refused to answer it.

[Ares]

An agreement would give lawmakers political cover to raise the $14.3 trillion debt ceiling before August 2, when the Treasury Department has said it will run out of money to pay the country's bills.

The Treasury is already out of money, they're tapping Federal Pension programs to fund it to August 2nd. So the "journalist" really means that the federal pension system will of been raided and won't have anything left if they can't raise the debt limit.

[chad]

the real tragedy will be two seconds after they lift the debt limit. not only will they be continuing to pile on regular debt, but they will also have to float back all of themoney they stole from the federal pension system. it'll be double what people are expecting.

[Neuro]

the real tragedy will be two seconds after they lift the debt limit. not only will they be continuing to pile on regular debt, but they will also have to float back all of themoney they stole from the federal pension system. it'll be double what people are expecting.
Exactly, at that point the treasury is going to vacuum the markets for money, without the Fed issuing any new. The markets will crash!

[Canadian-guerilla]

Exactly, at that point the treasury is going to vacuum the markets for money, without the Fed issuing any new. The markets will crash!

so, TSHTF before Aug 2nd ?

[po boy]

There is no man-made law that says the feds must be responsible. But there is natural law, or God's law as some call it. When you break these laws, the punishment comes naturally. If the feds act irresponsibly, they will pay for it by reduction of their power and credibility. They will give license to everyone to act irresponsibly.

Hatha

That reminds me of George Gordon saying you don't have to know the law to suffer the penalties, it works naturally like aids herpes and VD which he claims are the penalty for adultery.

As to the ND congress has the power to issue credit in the US con, I don't remember anything on a cap to the amount though. Also in the 14 amendment i think is says the validity of the ND cannot be questioned. I'm not sure that is the angle just my short sighted opinion.

[Neuro]

so, TSHTF before Aug 2nd ?
I think it is likely it is co-ordinated with the change in rules disallowing small speculators buying PM contracts, the 15th of July... These are the predominant longs on the papermarket for gold and silver. But I do believe we will see a general market crash when the debt ceiling is lifted, and that should happen before the 2nd of August. The initial reaction may be a spike up in the markets on the news, to get the bagholders in, and then slam down, a few minutes later!