Free Republic

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 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 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.

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.”

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...

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...

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...

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...

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...

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...

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...

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...

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...

“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...

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,...

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...

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...

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...

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.

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...