darkinsky
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yes things are normal as before, no problem
1.5 trillion dollar unpaid loan and counting
If the US defaults on its debts on August 2
- Thread starter 53fd
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yes things are normal as before, no problem
1.5 trillion dollar unpaid loan and counting
Its more political. Yes us economy is deep ttouble but current drama is last weapon of republicans to see obama fail. If debt celing was 12 tri its already breached. Only way out is increase tax . Republican foes not want to increase tax on millionaores.
Riseup
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Analysis - In U.S. debt row, hints of emerging-economy crises
By Pedro Nicolaci da Costa
WASHINGTON | Sun Jul 24, 2011 11:02pm BST
WASHINGTON (Reuters) - Debt default. A ratings downgrade. Political deadlock. Such terms, once associated primarily with the developing world, now abound in the mighty United States.
As the U.S. Congress flirts with the once-unthinkable prospect of not paying the country's bills, the heated battle over a usually routine vote to lift the country's debt ceiling is dealing another blow to America's image.
The global financial crisis, which was rooted in poor regulation of the U.S. housing and banking sectors, already tarnished perceptions of the United States overseas.
For political economy experts who have spent their careers focused on the emerging world, Washington's protracted debt stand-off is all too reminiscent of the divisions more typical of developing-country politics.
"We attend a lot of meetings with Latin Americans and we used to complain to them about the problems they had, and now they like to say to us: 'That sounds just like the U.S.'," said Peter Hakim, head of the Inter-American Dialogue, a policy group in Washington.
"What's really shocking is the inability to reach agreement. All of a sudden the U.S. is a democracy that is unable to find a compromise. We're polarized."
That sort of polarization is common in the developing world. The United States was often a critic of institutional disarray in places such as Brazil, where a multitude of parties makes it difficult to enact legislation, or Mexico, where the opposite problem -- long-standing one-party rule -- stifled political choice.
Yet the stalemate now facing the U.S. two-party system demonstrates the challenges of the divided government Americans voted for last November.
Given that the United States is home to not only the world's largest economy but also its most liquid and safe debt market, the repercussions of a U.S. financial meltdown are potentially much larger than a more contained emerging-markets crisis.
British Business Secretary Vince Cable told BBC television on Sunday that "right-wing nutters" in the U.S. Congress were holding up a deal to prevent a catastrophic default, posing a greater threat to the global financial system than the euro zone, which has been grappling with a debt crisis of its own.
Argentina's President Cristina Fernandez, whose own country defaulted on about $100 billion in debt a decade ago, asked last week: "When did the American dream become a nightmare?"
When advising the United States on how to deal with the budget crisis, ratings agency Moody's last week suggested the country eliminate the debt ceiling to prevent repeats of the kind of uncertainty now gripping financial markets.
Instead it suggested following the example of Chile, where increases in debt are constrained but not technically limited.
Fast-growing countries in Latin America, including Chile and Brazil, achieved a more sustained growth path in part due to reforms aimed at reducing their debt loads and reining in budget deficits.
COURTING A DOWNGRADE
The push from Republican leaders for sharp cuts in U.S. government spending, which many economists say would hurt a fragile recovery, has made the rating agencies a driving force for policy. They had come under fire for giving top-notch grades to shoddy real estate securities, contributing to the financial meltdown of 2007-08.
Ratings agencies played a central role in the emerging-market debt crises in Russia, Asia and Latin America in the late 1990s. Back then they were also criticized as too late to downgrade countries with questionable credit records.
If the United States is downgraded, interest rates could rise, risking a new recession. Some Wall Street economists say the recovery is already being hampered as the threat of a debt default deals a further blow to consumer confidence.
Another damaging consequence of the debt limit scuffle has been to shift the discussion away from doing more to bring down a 9.2 percent jobless rate to a debate over spending cuts that will most likely put a damper on economic growth.
Investors, who long brushed off the prospect of an outright default as highly unlikely, are increasingly concerned and shocked that the politicians in Washington have allowed the crisis to get this far.
"The extent of political dysfunctionality will stun many, especially at a time when America needs unity and common purpose in D.C. to also address high unemployment and other challenges," said Mohamed El-Erian, co-chief investment officer of the mega bond fund PIMCO, who writes columns for Reuters.
Haag Sherman, managing partner at Salient Partners, an investment firm in Houston, Texas, said the angry tone of U.S. politics harked back to the early days of the Republic, when the United States really was a developing nation.
"We were an emerging market then, and you have some of the hallmarks of an emerging economy today: increasing concentration of wealth, an entrenchment of the political class," he said.
(Additional reporting by Jennifer Ablan in New York; Editing by Dale Hudson)
http://uk.reuters.com/article/2011/07/24/uk-usa-debt-image-analysis-idUKTRE76N2VX20110724
By Pedro Nicolaci da Costa
WASHINGTON | Sun Jul 24, 2011 11:02pm BST
WASHINGTON (Reuters) - Debt default. A ratings downgrade. Political deadlock. Such terms, once associated primarily with the developing world, now abound in the mighty United States.
As the U.S. Congress flirts with the once-unthinkable prospect of not paying the country's bills, the heated battle over a usually routine vote to lift the country's debt ceiling is dealing another blow to America's image.
The global financial crisis, which was rooted in poor regulation of the U.S. housing and banking sectors, already tarnished perceptions of the United States overseas.
For political economy experts who have spent their careers focused on the emerging world, Washington's protracted debt stand-off is all too reminiscent of the divisions more typical of developing-country politics.
"We attend a lot of meetings with Latin Americans and we used to complain to them about the problems they had, and now they like to say to us: 'That sounds just like the U.S.'," said Peter Hakim, head of the Inter-American Dialogue, a policy group in Washington.
"What's really shocking is the inability to reach agreement. All of a sudden the U.S. is a democracy that is unable to find a compromise. We're polarized."
That sort of polarization is common in the developing world. The United States was often a critic of institutional disarray in places such as Brazil, where a multitude of parties makes it difficult to enact legislation, or Mexico, where the opposite problem -- long-standing one-party rule -- stifled political choice.
Yet the stalemate now facing the U.S. two-party system demonstrates the challenges of the divided government Americans voted for last November.
Given that the United States is home to not only the world's largest economy but also its most liquid and safe debt market, the repercussions of a U.S. financial meltdown are potentially much larger than a more contained emerging-markets crisis.
British Business Secretary Vince Cable told BBC television on Sunday that "right-wing nutters" in the U.S. Congress were holding up a deal to prevent a catastrophic default, posing a greater threat to the global financial system than the euro zone, which has been grappling with a debt crisis of its own.
Argentina's President Cristina Fernandez, whose own country defaulted on about $100 billion in debt a decade ago, asked last week: "When did the American dream become a nightmare?"
When advising the United States on how to deal with the budget crisis, ratings agency Moody's last week suggested the country eliminate the debt ceiling to prevent repeats of the kind of uncertainty now gripping financial markets.
Instead it suggested following the example of Chile, where increases in debt are constrained but not technically limited.
Fast-growing countries in Latin America, including Chile and Brazil, achieved a more sustained growth path in part due to reforms aimed at reducing their debt loads and reining in budget deficits.
COURTING A DOWNGRADE
The push from Republican leaders for sharp cuts in U.S. government spending, which many economists say would hurt a fragile recovery, has made the rating agencies a driving force for policy. They had come under fire for giving top-notch grades to shoddy real estate securities, contributing to the financial meltdown of 2007-08.
Ratings agencies played a central role in the emerging-market debt crises in Russia, Asia and Latin America in the late 1990s. Back then they were also criticized as too late to downgrade countries with questionable credit records.
If the United States is downgraded, interest rates could rise, risking a new recession. Some Wall Street economists say the recovery is already being hampered as the threat of a debt default deals a further blow to consumer confidence.
Another damaging consequence of the debt limit scuffle has been to shift the discussion away from doing more to bring down a 9.2 percent jobless rate to a debate over spending cuts that will most likely put a damper on economic growth.
Investors, who long brushed off the prospect of an outright default as highly unlikely, are increasingly concerned and shocked that the politicians in Washington have allowed the crisis to get this far.
"The extent of political dysfunctionality will stun many, especially at a time when America needs unity and common purpose in D.C. to also address high unemployment and other challenges," said Mohamed El-Erian, co-chief investment officer of the mega bond fund PIMCO, who writes columns for Reuters.
Haag Sherman, managing partner at Salient Partners, an investment firm in Houston, Texas, said the angry tone of U.S. politics harked back to the early days of the Republic, when the United States really was a developing nation.
"We were an emerging market then, and you have some of the hallmarks of an emerging economy today: increasing concentration of wealth, an entrenchment of the political class," he said.
(Additional reporting by Jennifer Ablan in New York; Editing by Dale Hudson)
http://uk.reuters.com/article/2011/07/24/uk-usa-debt-image-analysis-idUKTRE76N2VX20110724
krash
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Oh my God! Stop acting like an idiot! This is a global issue. Everyone around the world is concerned about it, the Americans being the most! Where the hell did he disgrace America??? Apparently you have no f-in clue about whats going on in world. Every bloody US news channel is talking about it. Are they indulging in bashing America too? I even doubt that you understood what Bilal has been talking about.
jbond197
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I agree with you Aug 2nd will be another day as usual and nothing will happen.. America will come out stronger.. All the haters need to wait and watch..
Juice
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My favorite are the threads that claim the US is close to anarchy in the streets, cannibalism and breaking into twenty pieces. I live here, and I haven't seen anything different than it has always been. Maybe I'm missing something?
(PS...I do understand when Bailhaider post such nonsense, he lives in New Jersey, must be frightening to a foreigner!)
RazPaK
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My favorite are the threads that claim the US is close to anarchy in the streets, cannibalism and breaking into twenty pieces. I live here, and I haven't seen anything different than it has always been. Maybe I'm missing something?
(PS...I do understand when Bailhaider post such nonsense, he lives in New Jersey, must be frightening to a foreigner!)
I feel that you are like a child that has wandered to the adults table in a restaraunt. To say that everything will be ok is close to being mentally retarded, or very closely sheltered. I'm sure whatever crap school you've attended at least teaches mathematics. Even if this current crisis is temporarily solved, the issue of unsustainable debt for the US still stands. Get a grip. If you're a naive pre-teen with their heart in the right place, then I apologize but still advocate more research on the matter of which you speak.
fallstuff
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August 2nd is the estimated date when the U.S will run out of money to pay debts unless the ceiling is raised. If it is not raised there will be default and downgrading of ratings. The fan-boys don't seem to understand that. American Exceptional-ism does not offer protection against lower ratings.
Juice
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45, college educated. You live in the US, what is the name of your local separatist group? What are they planning to call the section they carve from the US? Where do you live, I want to check the news about the food-riots there. You grow up, this is not Pakistan.
I await your reply. You seem to think I am wrong about there not being anarchy in the streets...show me a few examples.
AUz
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Looks like OP is rejoicing the news that US may default on debt. I can't fathom even in dreams insulting country that I am citizen of. But this guys is living all his life in all luxuries but his loyalty belong to somewhere else i seems..you guys will never change..and it is waste of time to think about your loyalties and honesty..your type of guys are disgrace to humanity..
Are...you...fuckin...STUPID? How in the hell you got the idea that the OP is somehow "rejoicing" this situation?
jeypore
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Why Corporate America?????????
Awesome
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The republican plan is to get Obama to increase the debt ceiling by a trillion dollars and get obama to cut spending by a trillion... Obama however has seen through this plan and has vetoed it. This plan would bring US again to the same position just before the elections and this situation may get handled now but come election time it would be a mess.
Dirty politics man, playing with the reputation and the fate of the country... We thought Zardari was bad.
Juice
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Serious? It is still available in Texas, or do you have other problems?
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