Tag Archives: debt ceiling

  • Insider
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    Kicking the Can, As Expected

    The recent deal in Congress solves nothing, resolves nothing
    by Chris Martenson

    Thursday, October 17, 2013, 8:23 PM


    I didn't get too worked up analyzing what might happen in the event of a U.S. default on its debt, because I knew in my heart of hearts that such a move would have required some serious political spine.

    This is something that is completely lacking in both parties right now, so I didn't worry about any other outcome besides an eleventh-hour agreement to kick the can a bit further down the road.

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  • Daily Digest
    Image by Tax_Credits, Flickr Creative Commons

    Daily Digest 10/16 – U.S. AAA Rating On Watch, Debt Ceiling FAQs

    by saxplayer00o1

    Wednesday, October 16, 2013, 12:22 PM

    • Bodies Double as Cash Machines With U.S. Income Lagging
    • Officials to demolish 1,600 vacant homes in Flint
    • Fewer snowplows on King County roads this winter
    • Bailed-out Portugal to make new cuts in 2014 budget
    • U.S. has defaulted twice, historians point out
    • Record Number Of Oklahomans On Food Stamps
    • State sees record number of homeless families sheltered in hotels
    • Gold premiums hit record in India
    • Poll: Half of older workers delay retirement plans
    • Red-light cameras generate revenue, controversy
    • Venezuela Inflation Rises above 49%
    • Frequently asked questions on what happens on Oct. 17 if Congress doesn’t lift the debt ceiling
    • Bad loans at Italy's banks rose to almost 142 bln euros in August
    • Fitch: U.S. AAA rating on watch over debt debate

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  • Insider
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    A Couple of Bad Ideas

    Practical thinking remains in short supply
    by Chris Martenson

    Monday, December 10, 2012, 12:46 AM


    This week a couple of very bad ideas were floated, one having to do with U.S. natural gas (NG) supply, and the other a proposal for how the U.S. president could avoid having to deal with the pesky debt ceiling.

    Throughout the entire unfolding of the crisis, we have all been patiently waiting (if not agitating) for reality to gain a place at the table of ideas.  Instead, we still have the usual fare of the absurd and the ridiculous, indicating that we are not quite ready yet to entertain the serious business of negotiating the various predicaments that we face.

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  • Blog

    Debt Ceiling Dilemma: The Foul Choice Facing Investors

    by Chris Martenson

    Thursday, July 28, 2011, 2:23 PM


    For the record, I still believe that there will not be a breach of the debt ceiling and no overt default for the US. Things will be worked out in the nick of time, like they always are.

    However, the media is full of articles wondering about what ‘investors’ might do in response to a US default and/or credit downgrade. What will happen to Treasury prices? Will they go down as investors dump them en masse in response to a credit downgrade forcing interest rates to climb?

    It’s a big question, and the most likely answer is “No, not really”. Partly because these so-called investors have been well-conditioned to believe that another bailout is always around the corner, but mainly because they have nowhere to go.

    The big money is trapped.

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  • Blog

    James Turk: Gold Is Our Defense Against the Fiat Currency Graveyard

    by Adam Taggart

    Tuesday, July 12, 2011, 2:44 PM


    “The rule of law has basically been thrown out the window. Money printing is the order of the day. And when politicians take control of central banks, which they have done in the United States and they are also doing in Europe, that basically destroys the currency. It puts the currency on the road to what I call the Fiat Currency Graveyard, so I expect there are going to be massive currency problems as we go forward. The financial crisis that we have been dealing with for the last several years has not been solved.”

    So cautions James Turk, widely-respected precious metals expert and founder/chairman of GoldMoney. In this detailed interview (recorded in June), Chris and James explore the probable outcome of the current US debt-ceiling operatics, the likelihood of future Fed money printing, and strategies for preserving wealth. In short, James believes we are witnessing the decline of the world’s major fiat currencies, and expects gold to be remonetized in the aftermath.

    James explains why he expects:

    • The US Government to raise the debt ceiling in August, which will require the Federal Reserve to print more money in order to soak up the new debt, sending gold and silver prices much higher this summer.
    • Holders of fiat currencies to experience increasing losses in the purchasing power of their wealth; contrary to those who hold precious metals, who will see the reverse.
    • This pattern of currency devaluation to be similar to the many other examples seen throughout monetary history. In short, the “unthinkable” event of a dollar collapse is a much more probable event than most consider.
    • Precious metals to be an excellent vehicle for preserving purchasing power through this next transition, and whatever future currency emerges, their historic role as money to be restored.
    • The end of the bull market in precious metals is years away. We’ll know its ending when holders of PMs begin trading them for other assets (e.g. property, securities) that have become overly undervalued.

    Click the play button below to listen to Chris’ interview with James Turk (runtime 49m:11s):

    [swf file=”http://media.chrismartenson.com/audio/james-turk-2011-07-12.mp3″]

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