EconMatters
After House Speaker John Boehner (R-Ohio) abruptly withdrew from the debt talks with the White House last Friday, the latest development is the dueling proposals from the Republican leader in the House and Democratic leader of the Senate to hopefully get the federal $14.3-trillion debt ceiling lifted.Nevertheless, Lawmakers remain at odds over how to avoid a debt default. With a fast approaching Aug. 2 deadline, the impasse saga at Washington only serves to sharpen the image of an unprecedented U.S. sovereign default into HD 3D.Investors' fear and worries over the potentially devastating default have tanked the equities and commodities, while gold hit a record of almost $1,620/oz. Rather than the conventional risk-off trade--"sell commodities, buy the dollar"-- investors threshed the dollar, but still have faith in the U.S Treasury. The U.S. dollar has lost 7% year-to-date, while Treasury has not . . . . . . .
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