The United States could plunge back into recession if inaction in Washington forced a debt default, according to a new analysis that arrives as the country reaches the legal limits of its borrowing authority.
Some 640,000 U.S. jobs would vanish, the housing market's woes would deepen, stocks would fall and lending activity would tighten if the country were unable to pay its bills, according to a report by the centrist think tank Third Way due out on Monday.
The Treasury Department is expected to hit its $14.3 trillion borrowing limit on Monday, making it unable to access the bond markets again. Lawmakers from both parties say they won't approve a further increase in borrowing authority without steps to keep debt under control.
Treasury officials have warned of "catastrophic" consequences if Congress does not approve a further debt-ceiling increase by then, but have declined to say exactly what would happen.
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Please - this article is a joke! Does ANYONE think that the debt ceiling will not be raised?? All this huffing and puffing by both political parties and the MSM is pure threater! The debt ceiling will continue to be raised for years to come - there is no out! So get prepared for at least a 2.5 trillion addition to the ceiling and very little if any CUTS will occur. All smoke and mirrors!
ReplyDeleteThe debt ceiling cannot and will not be raised as ordered by the New World Order.
ReplyDeleteWe have recognized that the USA has squandered the blessing of being the world currency reserve and they have failed.
Time to take the torch from the USA and hand it over to the New world Order.
They have no choice but to raise the debt ceiling after a few rounds of good cop (dems), bad cop (pubs). So there will be a bit of drama and publicity. Then they will cut a few dollars here and there and then raise the debt ceiling. They will then continue the printing presses and inflate the value of the dollar to nothing.
ReplyDelete2012 will be an absolutely horrible and painful year, many will suffer and die.
I didn't know Tim Geithner was working for Reuters now
ReplyDelete6:12 Amen
ReplyDelete7:05 Your statement is 100% contradictory
9:07 The dollar is already devalued to four
cents. Agree,late '11 EVERYBODY WILL know
the gig is up.
The recession has ended?
ReplyDeleteYes, the ression has ended
ReplyDeleteWe are now in the greatest depression
Luckily for us however; japan is bankrupt -
so is greece, spain, portugal, ireland and
france; china is about to implode on itself
india has a full time job on it's hands just finding enough potable water; africa is well=
africa, the middle east is basically on fire
Boy, great time to be in Peru !
China's economic survival is completely dependent on exports and if nobody is importing this Chinese crap, they will collapse.
ReplyDeleteI never noticed we are out of the recession. I have a job, yet at the same time, I have worked less than 160 hours all year!
All I can do with my spare time is maintain my garden and keep my guns clean and oiled.
Trouble thinking straight about reality underemployed American 12.46?
ReplyDeleteDo you still thijnk American consumers on credit are still the center of the world economy?
Who is economically dependent on whom here and which economy has already collapsed first ?
Your “spare time” away from your subsistence garden and gun polishing IS your job and American reality . Where at 52 weeks in a year you are working 160 hours a year .or about three hours a week.Because Capital cannot make a profit fro your high waged labor in a country that has de-industrialized . and exported most its own consumer goods industrial production.
So, not many dollars for you to spend on affordable cheap labor crap products now ?
Who will lend you credit in order to top up the credit cards of a person who only can find 3 hours a work a week .
A million Americans competed recently for 50,000 minimum wage jobs at Mc Donalds
You are just another reject of American capital !
Just one of millions of the underemployed over populating America unable to produce a profit for capital.
So, Your talk of Chinese “crap”talk sounds like sour grapes to me .
Americans could not afford imported quality that is why Chinese goods in the stores are are crap products .
They supply quantity in a quality to meet the effective cash in hand demand .
But You can no longer afford even these near slave labor produced goods in any quantity, now that your own credit supply and job is lacking ,so you are reduced to superior "sour grapes" sneering at their Quality!
The Chinese are not providing as much vendor credit and support for the dollar hegemony system now that the value of the dollar is being self destroyed by manipulating the $ printing press .
Therefore the bankrupt , insolvent ,already debt ridden USA is forced to support its own credit supply by purchasing its own Treasury bills for deficit spending in the trillions!And the more America counterfeits $ bill paper creating inflation the less willingness is seen in the rest of the world to transfer real commodity wealth in exchange for crap paper.
How will Wall Mart and America continue to make much profit from retail sales.of imported Chinese crap now that credit supply to America and yourself is drying up as the dollar hegemony system collapses ?
Whatever is happening to the once profitable Chinese export markets in America as the dollar value collapses .they have the exp[orts markets in rest of the world and the industry to service that.
And they have a large potential internal market as a basis for mass production.Embittered American Debt Peons has beens working like primitive old style Chinese market Gardners for subsistence living with only a small spare time cash income will not appear to be an attractive profitable market for even Chinese crap retail products anyway.
Go collect some food stamps to supplement your vegetarian and cheap corn derivatives product diet!