Free Republic 4th Quarter Fundraising Target: $85,000 Receipts & Pledges to-date: $69,460
81%  
Woo hoo!! And now less than $16k to go!! We can do this. Thank you all very much!!

Keyword: default

Brevity: Headers | « Text »
  • Mitch McConnell : ‘No Government Shutdowns and No Defaults on the National Debt’

    11/06/2014 9:16:08 AM PST · by SeekAndFind · 74 replies
    Pajamas Media ^ | 11/6/2014 | Bill Straub
    WASHINGTON – Sen. Mitch McConnell appears on the verge of achieving his lifelong goal to serve as majority leader in the upper chamber after easily dispatching Democratic Secretary of State Alison Lundergan Grimes in Kentucky Tuesday night, winning an unprecedented sixth six-year term in the process. The race was expected to be close according to the late polls but, as was experienced throughout Election Day, the surveys seemed to undercount Republican strength to a substantial degree. With all of the commonwealth’s precincts reporting, McConnell ended up with 806,689 votes, good for 56 percent of the total while Grimes garnered 584,625,...
  • Oregon gov's fiancée reportedly helped buy land to grow marijuana in 1997

    10/14/2014 9:21:05 AM PDT · by afraidfortherepublic · 18 replies
    Fox News ^ | 10-14-14 | KOIN-TV
    First she admitted being part of a fraudulent green-card marriage -- now, a new report says Cylvia Hayes, fiancée of Oregon Gov. John Kitzhaber, partnered to buy land intended for an illegal marijuana growing operation in 1997. KOIN-TV reported late Monday that Hayes partnered with a man to buy the $245,000 property in Washington state using a $15,000 down payment in November of that year. The man who sold the couple the land told the station that Hayes and her partner soon stopped making payments, and records showed that Hayes gave up her interest in the property in April 1998....
  • Argentina Slides Into Default as Debt Talks Fail

    07/31/2014 6:42:40 AM PDT · by Enlightened1 · 13 replies
    AP via ABC NEWS ^ | 07/31/14 | CLAUDIA TORRENS
    he collapse of talks with U.S. creditors sent Argentina into its second debt default in 13 years and raised questions about what comes next for financial markets and the South American nation's staggering economy.
  • Argentina to hold last-gasp debt talks with mediator Tuesday (Default Looms Wed.)

    07/28/2014 1:13:48 PM PDT · by tcrlaf · 5 replies
    Yahoo News ^ | 7-28-2014 | By Richard Lough and Daniel Bases
    Argentina on Tuesday will meet the U.S. mediator in its battle with 'holdout' debt investors suing the country for last-minute talks to avert its second default this century. Mediator Daniel Pollack said in a statement on Monday he received a telephone call from the Argentine government advising him a delegation of technical, financial and legal representatives will meet him at 11 a.m. EDT (11.00 a.m. EDT) on Tuesday in his office. "I again urged direct, face-to-face conversations with the Bondholders, but that will not happen tomorrow," Pollack said, referring to the holdout creditors. Argentine dollar-denominated bonds fell more than 3...
  • Argentina Is Getting Exactly What It Deserves

    07/03/2014 9:41:28 AM PDT · by blam · 20 replies
    Bi ^ | 7-3-2014 | Linette Lopez
    Linette LopezJuly 3, 2014Argentina has its back against a wall. On July 30 it may default on a sovereign-debt payment that could send its economy into a tailspin of rising interest rates, money printing, and inflation. It could be the worst economic tragedy the republic has seen since 2001. And the tragedy will be well deserved, because this is a drama of Argentina's own making, a figment of political imagination tied closely with its history and culture. In Argentina, debt is identity, and this specific over-$1.3 billion debt in question, purchased by a group of hedge fund managers back in...
  • Moody's pushes Puerto Rico debt deep into junk status

    07/01/2014 2:58:11 PM PDT · by george76 · 13 replies
    AFP ^ | 01 July 2014
    Ratings company Moody's on Tuesday slashed Puerto Rico's debt rating by three notches into even deeper junk status after the US territory passed a debt-restructuring law. Moody's Investors Service cut the rating to "B2" from "Ba2" and said the outlook was negative, indicating further downgrades were possible. Now dubbed the "Greece of the Caribbean," the archipelago is, like Greece, reeling under massive debt. Over the past decade, the commonwealth's debt has doubled to nearly $70 billion and investors are growing increasingly worried the government is running out of cash. In a bid for debt relief, the Puerto Rican authorities recently...
  • Argentine Default Looms; Refuses To Negotiate; Admits Next Bond Payment "Impossible"

    06/19/2014 8:12:51 AM PDT · by SeekAndFind · 15 replies
    Zero Hedge ^ | 06/19/2014 | Tyler Durden
    Argentina's attempt to work around SCOTUS decision in favor of the 'holdouts' was rejected (under anti-evasion orders) last night leaving Argentina no alternative but to threaten to default on its debt. The government called it "impossible" to pay bond service due on June 30, because payment to holders of restructured bonds could not be made unless the 'holdouts' were paid $1.33 billion at the same time (and Argentina's economy minister argues could be up to $15 bn) which the distressed country clearly does not have. For the first time in 12 years, Argentina has agreed to negotiate with the...
  • Haven’t paid a credit card for 6 months? [troll aka “foolynyah” zotted]

    06/15/2014 12:50:54 AM PDT · by pansgold · 259 replies
    VI / XV / MMXIV | pansgold
    This advice is worth what you paid for it. You see, after 90 days of not paying on a credit card, the bank charges it off and sells the debt along with hundreds or thousands of others to a collection agency for 1/100th of the value of the original debt. The debt buyer then tries to collect from the debtor and they keep all the money they can collect. They will take you to court and try and garnish your wages for 6 to 8 or 12 years. That’s when you ask the court to force the new debt holder...
  • 20 Signs That The Global Economic Crisis Is Starting To Catch Fire

    02/14/2014 7:46:25 PM PST · by Tolerance Sucks Rocks · 49 replies
    Freedom Outpost ^ | February 14, 2014 | Michael Snyder
    If you have been waiting for the "global economic crisis" to begin, just open up your eyes and look around. I know that most Americans tend to ignore what happens in the rest of the world because they consider it to be "irrelevant" to their daily lives, but the truth is that the massive economic problems that are currently sweeping across Europe, Asia and South America are going to be affecting all of us here in the U.S. very soon. Sadly, most of the big news organizations in this country seem to be more concerned about the fate of Justin...
  • The Word That Changed the Debt Ceiling Debate ("Default")

    02/12/2014 5:06:51 PM PST · by Timber Rattler · 5 replies
    Politico ^ | February 11, 2014 | DOUG HATTAWAY and STEVE PIERCE
    When Treasury Secretary Jack Lew recently gave notice that the federal government would once again hit the debt ceiling in February, the response from congressional Republicans—who twice took the nation to the brink of default—was decidedly muted. The official line? “We believe that defaulting on our debt is the wrong thing,” says House Speaker John Boehner (R-Ohio). “We don’t want to do that.” On Tuesday, the House duly voted to raise the debt limit without conditions, sending the action over to the Senate. This move represents a 180-degree turn from the previous strategy of trying to extract concessions from Democrats...
  • The New Debt Ceiling Deadline Is Going To Be Earlier Than We Thought

    01/23/2014 12:15:55 PM PST · by Brown Deer · 33 replies
    Business Insider ^ | Jan 22, 2014 | Brett LoGiurato
    The U.S. is likely to exhaust its borrowing authority on the earlier side of what Treasury Secretary Jack Lew had estimated, he said in a letter to Congressional leaders on Wednesday. Lew warned in the new letter that Congress will likely need to raise the debt ceiling by late February to avoid a potential default on the country's obligations. As part of the bill to reopen the government in mid-October, the debt limit was suspended through Feb. 7. The Treasury can use so-called "extraordinary measures" after that point to keep borrowing and paying the nation's bills for a few weeks...
  • Venezuela About To Run Out Of Food Despite Fresh All Time High In Its Stock Market

    01/22/2014 7:17:36 PM PST · by mykroar · 17 replies
    ZeroHedge ^ | 1/22/2014 | Tyler Durden
    Venezuela can be proud: while the US stock market has gone exactly nowhere in 2014, the Caracas stock exchange of the socialist paradise has continued kicking ass and taking names, just today printing a fresh all time high.
  • Mega Default Scheduled in China Scheduled for January 31

    01/20/2014 4:31:17 AM PST · by tired&retired · 19 replies
    Forbes ^ | January 19, 2014 | Gordon G Chang
    On Friday, Chinese state media reported that China Credit Trust Co. warned investors that they may not be repaid when one of its wealth management products matures on January 31, the first day of the Year of the Horse. The Industrial and Commercial Bank of China sold the China Credit Trust product to its customers in inland Shanxi province. This bank, the world’s largest by assets, on Thursday suggested it will not compensate investors, stating in a phone interview with Reuters that “a situation completely does not exist in which ICBC will assume the main responsibility.”
  • Coastal Fats: Millionaires Defaulting On Mortgages In Record Numbers While Others Struggle

    12/08/2013 7:51:35 AM PST · by whitedog57 · 14 replies
    Confounded Interest ^ | 12/08/2013 | Anthony B. Sanders
    While foreclosure activity as a whole has been declining in the U.S., there are still some unnerving aspects to the housing and mortgage recovery. So, it’s time for “The Good, The Bad and The Ugly.” The good. According to RealtyTac, overall U.S. foreclosure activity is down 23 percent year-to-date through October 2013. The bad. Foreclosure activity on properties in the $5 million-plus value range is up 61 percent from the same time period in 2012. And most of it is concentrated in Florida and Los Angeles. I designate Atlanta as an honorary coastal city since Georgia does have properties on...
  • Good News! Mortgage Credit Expands In Q3 While Serious Delinquencies Fall (Student Loans Rise)

    11/14/2013 11:34:22 AM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 11/14/2013 | Anthony B. Sanders
    According to the Federal Reserve of New York’s Quarterly Report on Household Debt and Credit, mortgages, the largest component of household debt, increased by 0.7 percent in the third quarter of 2013. Mortgage balances shown on consumer credit reports stand at $7.90 trillion, up by $56 billion from the level in the second quarter. Balances on home equity lines of credit (HELOC) dropped by $5 billion (0.9 percent) and now stand at $535 billion. Household non-housing debt balances increased by 2.7 percent, with gains of $31 billion in auto loan balances, $33 billion in student loan balances and $4 billion...
  • Moody’s warns of bankruptcy in Scranton as city faces $20 million budget gap ( Penna )

    11/11/2013 3:08:11 PM PST · by george76 · 13 replies
    PA Independent ^ | November 11, 2013 | Eric Boehm
    Scranton could be headed towards another fiscal crisis like the one that resulted in city workers having their pay cut to minimum wage in 2012... Moody’s warned investors that Scranton could be facing the threat of default or bankruptcy thanks to a $20 million budget gap for the fiscal year that begins Jan. 1. The city is supposed to approve a new budget by Nov. 15, which would have to close that deficit to balance the budget. ... A similar crisis hit the city in July 2012, which lead to Mayor Chris Doherty cutting all city workers’ pay to minimum...
  • Continuing Appropriations Act Expires On January 15th, 2014 (Still No Risk Of US Default)

    10/29/2013 4:00:17 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/29/2013 | Anthony B. Sanders
    P.L. 113-46, The Continuing Appropriations Act, 2014, runs out on January 15th, 2014. * The continuing resolution (CR) funds the federal government until January 15, 2014 at the same level as in fiscal year * It also suspends the limit on the federal government’s debt until February 7, 2014. * The act sets up a process for verifying the incomes of people who apply for health insurance subsidies under Obamacare, the topic of the original version of the bill. *It provides back pay to the 800,000 government workers who were furloughed during the shutdown. * It also creates a joint...
  • Detroit Pensioners To Get 16 Cents On the Dollar (Mismanagement Has Consequences)

    10/27/2013 4:10:10 PM PDT · by whitedog57 · 44 replies
    Confounded Interest ^ | 10/27/2013 | Anthony B. Sanders
    Reuters may get the award for the worst headline of the year. “Detroit pension cuts ‘function of mathematics’ -investment banker.” It just told me that Detroit pension would be cut. But what you learn later in the article is pretty shocking: “Buckfire, a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the city’s pensioners, 16 cents on the dollar. There are about 23,500 city retirees.” 16 cents on the dollar? Well, that is what happens when municipal government spends too much money (inefficiently) and suffers a decline in...
  • 50% Of Foreclosured Homes Occupied, Free-rent To Defaulters

    10/24/2013 10:04:44 AM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 10/24/2013 | Anthony B. Sanders
    According to data released Tuesday by the Census Bureau, 49.2 percent of Americans received benefits from one or more government programs in the fourth quarter of 2011. govtbene And, of course, When Obamacare is fully implemented on Jan. 1, 2014, Americans earning up to 400 percent of the poverty level will qualify for a federal subsidy to buy health insurance. Speaking of more and more people of the government dole, RealtyTrac estimates that 47% of the nation’s foreclosed homes are currently occupied. The percentage actually tops 60% in some hot housing markets, like Miami and Los Angeles. Those still living...
  • The Angolan Witch Spider, Sequestration And The Government Shutdown

    10/22/2013 11:13:28 AM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 10/22/2013 | Anthony B. Sanders
    There is the recent internet sensation (not Miley Cyrus) … the Angolan Witch Spider! Allegedly, it feasts on dogs and cats and took several gunshots to kill. And was found in Texas. Sure-You-Want-To-Move-To-Florida The reality is less interesting. The photo was a fake. Here is the actual photo of the spider in question. Wolfie-(1)-c-2012-Paul-Santa-Maria-(Proof) Remember the dreaded “sequester?” Allegedly, 2.14 million jobs were at risk. And the Federal government partial shutdown? Allegedly, 700,000 jobs were at risk in the Greater Washington DC area. Here is the September 2013 unemployment number for Washington DC and Arlington VA: 5.40%. True, the unemployment...
  • The Great Default Already Happened

    10/19/2013 3:58:15 AM PDT · by Kaslin · 13 replies
    Townhall.com ^ | October 19, 2013 | John Ransom
    If a US default on interest and principal payments were to happen, make no mistake it would be a default of choice. Obama’s choice, that is. But he wouldn’t be the only one defaulting. Nor is he the only one to blame here. In order for the United States government to default on paying interest on the debt that we owe, a series of decisions would have to issue from the White House that would prevent those payments in the first place. There is enough money to prevent default, just not enough to keep the rest of the government...
  • The $17 Trillion Dollar Question(s)...

    10/17/2013 3:51:25 AM PDT · by Positive · 34 replies
    Various government agencies and a calculator | 10/17/2013 | Self
    If a family were to purchase a home with a $200,000 mortgage at 2.5% to be paid off in 15 years, the monthly payment would be $1333.57, or $16,003 per year. If a government owes a debt of $17 Trillion on which it pays principle and interest at a rate of 2.5% to be paid off in 15 years, the monthly payment would be $113.35 Billion, or $1.36 Trillion per year. So after 180 monthly payments the total payoff would be $20.4 Trillion, but let’s not get too deep into the weeds. The USA is averaging a deficit of about...
  • Surrender Dorothy! America Survives "Catastrophic" Brink Of Default (And Markets Yawn)

    10/16/2013 3:54:42 PM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 10/16/2013 | Anthony B. Sanders
    “Congress Set to End Fiscal Impasse as Boehner Concedes“ Sigh. So what was the reaction in financial markets from the surrender by Mitch McConnell (RINO-KY) and John Boehner (RINO-OH)? Particularly after the “terrifying crisis” that Democrats, the media and Gall Street professionals were screaming about? First, the 10 year US Treasury yield fell 6 basis points in the afternoon. Hardly an earth shattering change from the alleged “brink of default.” ust10psurr Second, US Credit Default Swaps are at 40, almost the same as Australia and New Zealand. Which, as far as I know, have NOT been on the brink of...
  • A Speech for Mr Boehner

    10/16/2013 11:47:45 AM PDT · by originalbuckeye · 20 replies
    10/16/13 | Originalbuckeye
    My fellow Americans, the President, the Democrats and the News Media have won a great political victory today, but the American people have lost an important battle. Republicans were elected to control the House of Representatives to stop the hemorrhaging of taxpayer monies. We have tried valiantly to rein in the spending, to stop this headlong sprint to bankruptcy that will happen to our beloved country. Those of us trying to do the responsible thing for the USA have been ridiculed, demeaned and degraded by those who pretend they wish for a 'more civilized' dialogue. We have been called terrorists,...
  • Senate leaders announce deal to end shutdown and avoid default (Boehner to cave)

    10/16/2013 11:31:41 AM PDT · by tobyhill · 57 replies
    nbc ^ | 10/16/2013 | Michael O'Brien
    On the brink of a national default, the leaders of the Senate struck a deal Wednesday to reopen the federal government and extend its power to borrow money. The House appeared ready to go along — and end, at least for now, the crisis in Washington. Sen. Harry Reid, the Democratic leader, said on the Senate floor at midday that his party and Republicans had found their way to a compromise to “provide our economy with the stability it desperately needs” and avert financial disaster. His Republican counterpart, Sen. Mitch McConnell, offered his blessing: “This is far less than many...
  • Boehner To Allow Vote On Senate Surrender To Obama - Washington Redskins Name Changed

    10/16/2013 10:10:49 AM PDT · by whitedog57 · 22 replies
    Confounded Interest ^ | 10/16/2013 | Anthony B. Sanders
    Despite no evidence in financial markets of a default, House Speaker John Boehner (RINO-OH) will bring the Senate clean Continuing Resolution (CR) to The House floor for a vote. The endless spending and debt growth in Washington DC will continue now that the Senate has turned over the power of pursestrings to The President (once House Republicans agree). Obamacare was already a tremendous transfer of power and control to the Executive Branch, and now capitulating to President Obama gives the Executive Branch overwhelming power and control. In order to honor our career politicians in Congress and the Administration, the Washington...
  • Where's The (Default) Beef? Still Little Evidence Of Government Default

    10/16/2013 7:29:45 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 10/16/2013 | Anthony B. Sanders
    Another morning, another gridlock. No deal from Obama and Congress with the default clock ticking. To paraphrase the old Wendy’s commercial, “Where’s the (default) beef?“ Credit default swaps for the US? Up slightly this morning, but still the lowest in the Americas. sovcds101613 And the US CDS “smile” remains (inverse hump in the CDS curve). uscdscurve101613 Zero Hedge has the hysterical headline that “Repo Soars To 2013 Highs On Default Fears, Bifurcated Collateral Market.” True, but compared to 2008, it is a drop in the bucket. repost101613 And the US Treasury 10 is up slightly today, not the massive default...
  • Senators Restart Talks as Default Looms

    10/16/2013 6:59:25 AM PDT · by libstripper · 9 replies
    New York Times ^ | Oct. 15, 2013 | Jonathan Weisman
    With the federal government on the brink of a default, a House Republican effort to end the shutdown and extend the Treasury’s borrowing authority collapsed Tuesday night as a major credit agency warned that the United States was on the verge of a costly ratings downgrade.
  • Thinking about moving SOuth - anyone who can provide suggestions?

    10/15/2013 9:47:23 PM PDT · by freedom462 · 175 replies
    So I am thinking of simply leaving the job I work at now and heading to a Southern state, Texas, North Carolina, Georgia, Alabama, Northern Florida, Tennessee, etc since I figure that, since I am one of those who does not have a reliable source of family aid of any kind, that this could be my only option. I am considering finding a church that has a sort of communal living situation, a farm, ranch, factory or other such source that could use additional workers and join one of them. I am thinking of it in light of a situation...
  • Missiles for milk: how Russia offered NZ military hardware to settle dairy bill

    10/15/2013 5:47:08 PM PDT · by cunning_fish · 8 replies
    The Guardian ^ | October 15, 2013 | Oliver Milman
    How do you settle a rather sizeable bill for your milk delivery? If you are a cash-strapped superpower the answer is, apparently, to offer up a pair of fighter jets and a nuclear submarine as payment. The extraordinary offer was made by Russia to New Zealand in 1993, a new book reveals. After the collapse of the Soviet Union, Russia was struggling to pay the $100m it owed New Zealand for a range of imported dairy products. In a meeting with Russian officials to thrash out payment terms, Jim Bolger, then New Zealand prime minister, was "absolutely stunned" to be...
  • BREAKING: House Deal Falls Apart As Conservatives Balk, White House Threatens Veto

    10/15/2013 5:14:58 PM PDT · by JSDude1 · 104 replies
    Townhall ^ | Oct. 15, 2013 | Guy Benson
    ----"Plan B" and fiscal cliff vote, redux. Having hammered out a deal to shoot back to the Senate tonight -- with most Republicans reportedly on board -- House GOP leadership has been forced to delay or cancel those votes after support among conservatives collapsed in the early evening hours. The rules committee meeting, which would have formally drawn up the bill and advanced it to the full house, has been postponed indefinitely. The reason is simple. They don't have the votes: What happened? The counter-offer's broad outline, which I've been following all day, seemed to be on track. Then the...
  • Washington Monument Syndrome Versus Federal Default: Gov't Has Plenty Of Slack

    10/15/2013 5:06:04 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders
    The Washington Monument syndrome is describe the tendency of government agencies in the United States to cut the most visible or appreciated services provided by the government when faced with budget cuts. And protect massive waste (since no one would miss the massive waste if it was cut). Such as closing National Parks and Monuments. What are government agencies hiding? The fact that agencies have large concentrations of non-essential personnel. Even Time.com recognizes that most of Federal government in non-essential. The interest payments on Federal debt is a small percentage of Federal current expenditures (11.5% at the end of Q2)....
  • Vanity: Sounds like we're going to default

    Just saw the statement from Pelosi.. that the bill the House is putting on the floor is "a decision to default" Sounds like an out and out rejection to me. The Republicans couldn't give much more!!! WTF! This reminds me of when Israel gave Yasir Arafatass EVERYTHING... and they STILL rejected it.
  • Why Refusing to Raise the Debt Ceiling Will Not Result in Default on American Debt

    10/15/2013 1:30:10 PM PDT · by honestabe010 · 7 replies
    Red Dirt Report ^ | October 15, 2013 | Brian Woodward
    The media, members of Congress, and the President of the United States have gleefully disseminated misinformation about what would happen if we do not raise the debt ceiling by October 17th. The biggest blow these lies encountered was when Moody’s, one of the nation's top credit rating agencies, released a memo on October 7th stating: “We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact...The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit...
  • A Tale Of Two Curves: US Treasury And CDS (T-Curve Upward Sloping, CDS Downward Sloping)

    10/15/2013 10:26:46 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders
    Class: Because of George Mason University’s screwy scheduling (no class today because Monday’s classes are now Tuesday classes because of Columbus Day), we can’t have our discussion of the impending US default. Here are two curves as of 1pm EST, the US Treasury yield curve and the US credit default swaps curve. The Treasury curve is upward sloping while the CDS curve is downward sloping. ustcdes1015E If we look at 1 month ago, we see an upward sloping CDS curve. 1moyccds And if we compare the current curves compared to President Obama’s inauguration date, we see an upward sloping CDS...
  • Pelosi Claims Republicans Sabotaging Deal, US CDS Declines, UST10 Yield Rises

    10/15/2013 8:59:31 AM PDT · by whitedog57 · 14 replies
    Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders
    The rhetoric is really heating up. California Congresswomen Nancy Pelosi (she of “You have to pass the bill to find out what’s in it” fame) is throwing around the world “sabotage” concerning any disagreement with President Obama. uscds101513 And the 10 year Treasury yield rose 3 basis points. ust10101513 And, of course, President Obama nixed ANY deal. Huh. If Pelosi thinks this is sabotage and will lead the US to default, its odd that CDS prices are falling.
  • Troops' Next Paycheck Disappears if U.S. Defaults

    10/15/2013 5:30:04 AM PDT · by BulletBobCo · 101 replies
    Military.Com ^ | Oct 15, 2013 | Richard Sisk
    The troops will get paid on Tuesday, but the check after that could come in the form of an IOU if the nation defaults on its debt obligations, Treasury Department officials said. Default on top of the government shutdown would cancel out the hastily-crafted legislation that brought back furloughed Defense Department civilian employees and allowed for the payment of back pay, death benefits, incentive pays, re-enlistment bonuses, veterans disability benefits and survivor benefits. All would be eliminated if Congress and the White House fail to reach agreement on raising the debt ceiling to avoid default on Oct. 17, Treasury Secretary...
  • Germany Lowers Debt-to-GDP By 14.7 Points While Obama Seeks To Spend Even More

    10/14/2013 4:42:01 PM PDT · by whitedog57
    Confounded Interest ^ | 10/14/2013 | Anthony B. Sanders
    After a weekend of meetings, there is still no agreement on the debt ceiling or budget. debtceilgst The reaction? US credit default swaps rose this morning. But notice they are still lower than they were on October 10th. uscds101413 The US has the fastest rising CDS. Simply because the alleged default on US sovereign debt isn’t hurting any other country. sovcds101413 So, President Obama and Congress are digging in their heels on cutting spending and debt. Even though Germany is cutting back on its debt. debtdrop Germany was able to lower its debt-to-GDP ratio. Why can’t Congress and Obama agree...
  • We're Going To Collide With The Debt Ceiling

    10/14/2013 1:38:32 PM PDT · by JerseyanExile · 25 replies
    Ace of Spades HQ ^ | 10/14/2013 | Gabriel Malor
    Alternate Headline: "Your Move, Mr. Cruz." There is talk of a deal being worked out this afternoon, but I thought I might mention that even if a deal is worked out today or tomorrow, we are almost certainly going to find out what happens when the debt ceiling isn't raised by Thursday. Quite simply, there isn't enough time for the Senate to consider a bill before the Thursday deadline . . . unless there's unanimous consent to waive the Senate rules. Here's what has to happen before the Senate can pass a bill raising the debt ceiling. (1) The bill...
  • Puerto Rico Follows Detroit Into Fiscal Abyss

    10/14/2013 12:41:34 PM PDT · by whitedog57 · 8 replies
    Confounded Interest ^ | 10/14/2013 | Anthony B. Sanders
    In the film “West Side Story,” Puerto Ricans sing “America” and pronounce that “Puerto Rico Is In American Now.” If they redid “West Side Story,” they would have to sing “Detroit Is In Puerto Rico Now.” Puerto Rico has a negative outlook from ratings agencies and is rated Baa3 by Moody’s. prcwdes Puerto Rican municipal bonds are collapsing in price. Puerto-Rico-commonwealth-2033 While the Puerto Rican municipal bond 20 year yield has popped to over 10%. PR-20-year-yield Puerto Rico credit default swaps have increased recently (note the “Batman ears”). prdcs At least Puerto Rico isn’t in the Argentina area of CDS...
  • US CDS Rises After No Agreement On Debt/Budget While Europe Trims Debt

    10/14/2013 8:12:29 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/14/2013 | Anthony B. Sanders
    After a weekend of meetings, there is still no agreement on the debt ceiling or budget. debtceilgst The reaction? US credit default swaps rose this morning. But notice they are still lower than they were on October 10th. uscds101413 The US has the fastest rising CDS. Simply because the alleged default on US sovereign debt isn’t hurting any other country. sovcds101413 So, President Obama and Congress are digging in their heels on cutting spending or debt. Even though Germany is cutting back on its debt. debtdrop Two different philosophies: austerity to balance sovereign budgets (Europe) or spending like there is...
  • Default, slim down, shut down are not the road to Perdition. Socialism through Executive order is.

    10/12/2013 12:47:45 PM PDT · by Usagi_yo · 5 replies
    10/12/13 | vanity
    One thing I haven't seen discussed or brought up is the fact that any shutdown, slim down or even default is repairable and only a temporary problem. But the creeping (well, it's past creeping now) socialism being brought about by Obama's executive orders, his unimpeded co-op of enumerate Congressional powers, his decisions to not enforce laws he doesn't like -- those are irreparable. Government rarely (peacefully) goes backwards. Taxes never go down and agency power is always expanding behind the backs of their congressional oversight. So bring on the shutdown, slimdown or default. Those can be fixed. Use those as...
  • Administration Promises Default If Debt Ceiling Isn’t Raised

    10/12/2013 12:44:46 PM PDT · by John Semmens · 13 replies
    Semi-News/Semi-Satire ^ | 11 Oct 2013 | John Semmens
    Treasury Secretary Jack Lew slammed Republican arguments that failure to raise the debt ceiling doesn’t guarantee default as based on “faulty logic.” This is despite the fact that Moody’s, the internationally respected financial rating service, supports the GOP case. “They say that maxing out our borrowing just means that we will have to cut spending somewhere, that we could continue to service our debt while we make cuts elsewhere,” Lew recounted. “What they are forgetting is that the decision on whether to default or cut other spending is in our hands, not theirs.” Calling the failure to raise the debt...
  • Debt Ceiling Disaster! Or Is It? Probability Of US Default Is < 1%

    10/12/2013 7:56:48 AM PDT · by whitedog57 · 14 replies
    Confounded Interest ^ | 10/12/2013 | Anthony B. Sanders
    House GOP members are meeting at Capitol. The meeting is about how to increase the debt limit for the USA. If Democrats and Republicans cannot reach an agreement, the USA is head for … default! 2012-movie-431x300 (1) It is true that the US is at (or actually a little past) its statutory debt limit. debtceilgst But what do credit default swaps, the price for insurance against sovereign default, tell us? First, the 5y CDS did rise after the specter of default reared its head. But fell towards the end of the week as rumors surfaced that President Obama was willing...
  • America’s default on its debt is inevitable

    10/11/2013 5:25:16 PM PDT · by Twotone · 12 replies
    Washington Post ^ | October 2013 | James Grant
    “There is precedent for a government shutdown,” Lloyd Blankfein, the chief executive officer of Goldman Sachs, remarked last week. “There’s no precedent for default.” How wrong he is.
  • The Government Default Straw Man: It’s All About Unsustainable Spending

    10/11/2013 12:16:21 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/11/2013 | Anthony B. Sanders
    The rhetoric in Washington DC and the media is … silly. Here is a chart of Federal government receipts and Federal government expenditure on interest for Treasury debt. fedrecifedint Does that look like the US can’t afford to pay its debt? Of course not. The problems is the voracious spending in DC which no one seemingly wants to stop. Now, if I plot Federal government current receipts against Federal government current expenditures, we see a different picture: its the spending that’s the problem. govtrevexp You can see in the picture that the much vaunted reduction in the deficit was a...
  • Head In Sand: Treasury Secretary Lew Warns Of Debt Ceiling, Not Rising Debt Or Entitlements

    10/10/2013 7:25:43 AM PDT · by whitedog57 · 12 replies
    Confounded Interest ^ | 10/10/2013 | Anthony B. Sanders
    U.S. Treasury Secretary Jacob J. Lew warned Congress that “uncertainty” over the debt limit is starting to stress financial markets and trying to time an increase to the last minute “could be very dangerous.” Lew was speaking in testimony prepared for a hearing before the Senate Finance Committee today. debtceilgst But not the growth rate in debt or entitlements? Obamacare and other entitlements will lead to even more explosive debt growth in the US. debtprojection7 The US and much of the world has already been experiencing explosive debt in both the public and private sectors. See this link for a...
  • Live updates: the shutdown--Moody's offers different view on debt limit

    10/09/2013 1:42:44 PM PDT · by RKBA Democrat · 24 replies
    Washington Post Blog ^ | 10-9-13 | Lori Montgomery
    <p>One of the nation’s top credit-rating agencies says that the U.S. Treasury Department is likely to continue paying interest on the government’s debt even if Congress fails to lift the limit on borrowing next week, preserving the nation’s sterling AAA credit rating.</p>
  • IMF Lowers Global Growth Forecast … Again (US Credit Default Swap Prices Fall)

    10/08/2013 7:53:33 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/08/2013 | Anthony B. Sanders
    The International Monetary Fund Oct. 8 lowered its global growth forecast for this year to 2.9 percent and to 3.6 percent in 2014, from 3.1 percent and 3.8 percent it had in July. The U.S. economy is “at the center of events,” the fund said. The damage to the world’s largest economy from a longer federal government shutdown “could be quite harmful” while “the failure to promptly raise the debt ceiling, leading to a U.S. selective default, could seriously damage the global economy,” the IMF warned in its new “World Economic Outlook”. Bear in mind that the IMF has had...
  • Chicken? $2.16 Trillion In US Gov Debt Matures In 2014, $441 Billion Between Now And Nov 15th

    10/07/2013 1:24:34 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/07/2013 | Anthony B. Sanders
    It is fascinating to watch the game of chicken being played in Washington D.C. Both sides on the budget war have drawn lines in the sand. President Obama and Senate Majority Leader Reid refuse to negotiate and have shut down the Federal government (sort of). House Republicans demand that Obamacare carveouts to political friends, Congress, etc. be ended or everyone be given a waiver from Obamacare. Regardless of which side of the fence you line up on, here are the facts. In 2014, $2.16 trillion of Federal government debt matures or rolls over. Now, THAT is a big Twinkie! usdebtdist...