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Dollar Default Woes...


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#1 Rogerdodger

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Posted 19 May 2023 - 12:33 PM

Whistling past the graveyard...

Drudge:

World watches in disbelief and horror as USA nears possible default...

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Debt Limit Talks Hit a Snag as G.O.P. Declares a ‘Pause’

Negotiations between top White House and Republican congressional officials over a deal to raise the debt limit hit a snag on Friday when the G.O.P. point man said it was time to “press pause” on the talks, complaining that President Biden’s team was being unreasonable and no progress could be made.

It was a setback in the effort to reach an agreement to avert a default before a June 1 deadline, though it was not clear whether the delay was a tactical retreat or a lasting blow to chances of getting an agreement.


Edited by Rogerdodger, 19 May 2023 - 01:14 PM.


#2 steadyquest

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Posted 19 May 2023 - 02:08 PM

A more realistic concern might be what happens to prices after our elected criminals agree to continue spending mountains of money that they don't collect in taxes and the treasury starts printing reams of new paper to raise the cash.

 

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#3 pdx5

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Posted 19 May 2023 - 03:39 PM

 
 

The support on Capitol Hill for what was once a fringe legal theory is growing by the hour as the debt ceiling talks head into their final days.

On Thursday, a group of of 11 progressive senators led by Sens. Tina Smith (D-MN), Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) released a new letter to President Biden calling on him to prepare to cancel the debt ceiling by invoking the 14th amendment.

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“We write to urgently request that you prepare to exercise your authority,” they write, adding that Republicans have made it "seemingly impossible" to reach.

Thursday’s action in the Senate comes in addition to growing support across Capitol Hill on the issue. The head of the Congressional Progressive Caucus — Rep. Pramilla Jayapal (D-WA) — recently said that the vast majority of the 101 Representatives in her group support invoking the 14th Amendment over giving concessions to Republicans.

The increased adoption of an idea that could roil markets is a reflection of growing Democratic anxieties that the White House could be preparing for deep compromise as ongoing direct negotiations with representatives of Speaker Kevin McCarthy continue.

Republicans have rallied behind a plan that calls for repealing wide swaths of Biden’s legislative wins since taking office in return for an increase in the government's borrowing author 

 

 

Speaker McCarthy is holding the economy hostage because he wants to kick moms and kids off health insurance and food assistance. That cannot be tolerated.

President Biden should be ready to "break glass in case of emergency" and invoke the 14th Amendment to prevent default.

 

 

The debate over invoking the Civil War-era amendment to solve a debt-ceiling crisis stretches back for years and centers around a line that reads: "the public debt of the United States, authorized by law...shall not be questioned."

That provision was written in the context of the Reconstruction amid fears that Confederate states would default on their debts. Nevertheless, a growing number of legal scholars say it could be invoked by Biden today to overrule the 1917 law that created the debt limit.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#4 steadyquest

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Posted 19 May 2023 - 05:04 PM

Maybe it won't be a succesful test of the monthly trend after all - - - still seven trading days to go...

 

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#5 steadyquest

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Posted 19 May 2023 - 05:27 PM

Here's an updated weekly chart - the one above was plotted on Monday.

 

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#6 Rogerdodger

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Posted 19 May 2023 - 07:00 PM

printing reams of new paper

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Can we even afford paper?



#7 pdx5

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    I want return OF my money more than return ON my money

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Posted 19 May 2023 - 08:33 PM

We can borrow money to buy paper & ink.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#8 steadyquest

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Posted 21 May 2023 - 12:16 PM

They'll manage - they can always sell some of their guns and ammo to raise funds for paper and ink.  It brings me warm fuzzies to know that they will retain their weapons long after the rest of us have been disarmed by the woken.

 

https://www.gao.gov/.../gao-19-175.pdf

 

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Here's another long term fund that has seen better days.

 

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