- Gold is rocketing to new highs in Asian market. It is hitting close to US$1625/oz but have since retraced some of its gains. Asian stock markets are off 1% in early trade. I think the snakes will drag this beyond 2 Aug to screw the American sheeple. After 2 Aug, they will decide not to pay social security, Medicare and other social services and use the money for interest payments and debt rollovers! This will create social unrest and riots in America.
- Eventually, I believe some sort of deal will be struck. The Illuminist snakes may even pull a stunt. They may get Obama to raised the debt ceiling without Congressional approval. The real question is: who is going to buy the debts when the debt ceiling is raised? No one will buy American bonds except the FedRes! QE3 is an absolute certainty. This episode will dent the confidence in US treasuries as safe assets. Countries will start to flee US treasuries! Got gold yet?
Officials scramble for debt deal, markets on edge
By Richard Cowan and Caren Bohan | Reuters
WASHINGTON (Reuters) – President Barack Obama and congressional leaders struggled on Sunday to break a partisan deadlock on a budget deal to avoid a U.S. debt default and reassure global markets, with no sign of a deal emerging.
Senate Democratic leader Harry Reid planned to brief Obama on a plan to cut $2.5 trillion in government spending over a decade to allow for a vote to raise the $14.3 trillion U.S. debt ceiling by the August 2 deadline. Significantly, his plan does not raise tax revenues, which is in line with Republican demands that no tax increases be included. An aide said Reid hopes to send the measure to the Senate floor for passage early this week.
At the White House, Obama met Reid and House of Representatives minority leader Nancy Pelosi, to take stock of any movement in Sunday negotiations. The initial reaction to the lack of a deal as Asian financial markets opened was mild with the euro gaining against the dollar in early trading. The dollar fell to a four-month low against the Japanese yen.
U.S. stock index futures fell more than 1 percent while gold hit a new high of $1,616.89 in early trade in Asia. “I suspect the initial reaction in markets will not be happy,” said Jim Awad, managing director at Zephyr Management in New York. “I don’t think they’ll go into a panic because they’ll wait to see what happens tomorrow.”
White House Chief of Staff Bill Daley warned that there would be a “few stressful days” ahead for financial markets, with the deadline to lift the U.S. borrowing limit drawing ever closer. Appearing on the CBS television program “Face the Nation, he said the United States will not default.
House of Representatives Speaker John Boehner gave fellow Republicans a progress report on his efforts to forge a plan but there was no sign Republicans had settled on a deal. The battle is over how deeply to cut government spending on social programs and whether to increase taxes. Democrats want to ease the pain of spending cuts by increasing taxes on the wealthy, a prospect Republicans oppose.
…. for the complete article click here!