• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

Debt Ceiling

Tyler Durden's picture

Why A Russian Default Is A Very Real Scenario In 2016





Who holds the majority of the debt that would be at risk in a Russian default? Not China.  Not Iran.  Not Syria.  No, it’s the exact same nations, and banks and funds within those nations, that are applying the sanctions against Russia. So, if Russia does default, what does it mean in terms of its political relationship with the West? Nothing. But what does it mean to its creditors? Everything... Simply put, if Putin believes that the benefits of a default outweigh the consequences to his country, he won’t hesitate to do it, no matter the international ruckus it might raise.

 
Tyler Durden's picture

Boehner On Debt Ceiling Deal: Process "Stinks" But Alternative Was Default





Today, as we previewed last week, we got just the deal we envisioned.  Which leaves us only with the soundbites, such as this one moments from from John Boehner.

BOEHNER SAYS AGREES WITH RYAN THAT PROCESS THAT PRODUCED BUDGET DEAL "STINKS"; BUT ALTERNATIVE WAS CLEAN DEBT CEILING HIKE OR DEFAULT

And as Boehner's last act, he now has the honor of telling the US public that its latest and greatest debt target has just been increased to just shy of $20 trillion.

 
Tyler Durden's picture

As China 'Buys Low' To Build SPR, Washington Forced To Sell Strategic Crude To Meet Budget





The signs of regime change are everywhere. From embarrassment by Russia's success in Syria to China's creation of its own 'World Bank' and SWIFT alternative, the trend of de-empirization are growing, but tonight's news that Washington will sell oil from its strategic reserve in order to meet budget constraints and avoid default (as China takes advantage of low prices to build its own reserves) is simply stunning in its analogy of the shifting world order.

 
Tyler Durden's picture

$19.6 Trillion Debt Ceiling: Done Deal?





With just days left until the November 3rd D-Day when the Treasury runs out of emergency cash and is forced to prioritize debt repayments over government spending, moments ago Politico reported that "congressional leaders and the White House are working toward a two-year agreement. A debt ceiling measure is on a parallel track."

 
Tyler Durden's picture

Moody's Says Failure To Raise Debt Limit Does Not Mean Default As Jack Lew Pleads To "Honor Our Obligations"





In an op-ed released today in the USA Today, the US Treasury Secretary takes his appeal to raise the U.S. debt target once again, this time to the $19.6 trillion number disclosed here previously, by pointing fingers at "some in Congress" who "are endangering this progress by once again manufacturing a crisis for our country. By waiting to the last minute to act on the debt limit, Congress could cause a terrible accident. This is not an abstraction; failure to raise the debt limit would mean devastating impacts for taxpayers, consumers and businesses." Only this is not really true...

 
Tyler Durden's picture

Crisis Alpha & Why Volatility Is The 'Only' Asset Class





There is a tiresome debate as to whether or not volatility is an asset class. Let us end that debate... Volatility is the ONLY asset class. We are all volatility traders and the only question is whether we realize it or not.  If you disagree do me a favor and imagine you are an alien that just landed on earth and you know nothing about investing.

 
Tyler Durden's picture

When Is A Ceiling Not A Ceiling?





When corrupt politicians do as they are told by their keepers on Wall Street and in the boardrooms of S&P 500 mega-corps....

 
EconMatters's picture

The Inflation Lie





This is also why the debt ceiling needs to be raised every year, and the US has doubled the national debt over the last 8 years.

 
Tyler Durden's picture

Presenting America's New Debt Ceiling: $19,600,000,000,000





The only certain outcome from the melodramatic debt ceiling fight over the next several days, is the following: the US is about to have a brand spanking new debt ceiling, one that should last it until March of 2017: $19,600,000,000,000.

 
Tyler Durden's picture

Paul Ryan Seals Republican Support, Declares Bid For House Speaker





One week ago he said he has no interest in the Speaker position, but so much can change in one week. Moments ago Paul Ryan sent out a letter to the GOP announcing he would run for speaker of the house. And since he had previously said said he would only enter the speaker’s race if he could lock up support from three wings of the fractious party, in the space of just 3 days this week, he appears to have done just that.

 
Tyler Durden's picture

US Treasury Postpones Next Week's 2-Year Treasury Auction Due To Debt-Ceiling Roadblock





Moments ago the US Treasury promptly removed any latent optimism that this latest debt ceiling crisis will somehow be magically fixed on its own after it announced that it would postpone the two-year note auction previously scheduled for Tuesday, as the impasse over the debt limit constrains the nation’s borrowing. “Due to debt ceiling constraints, there is a risk that Treasury would not be able to settle the two-year note”

 
Tyler Durden's picture

Futures Firm On Hope Draghi Will Give Green Light To BTFD





After yesterday's dramatic late day market rout catalyzed by the tumble in the biotech sector in general, and Valeant in particular, and foreseen in its entirety by Gartman who went bullish just hours before, this morning US equity futures and European stocks have recouped some losses on the recursive, and traditional, hope that Mario Draghi will say something to push risk higher when he speaks in 2 hours at the ECB's press conference in Malta. And yet, just like Yellen a month ago, Draghi faces the paradox of reflexivity that after years of being ignored, is the "new thing" in town: how does he intervene and demonstrate he is readier than ever to set up stimulus, without panicking investors over euro area’s health.

 
Tyler Durden's picture

Traders Dump T-Bills Despite Lew's "Hope" US Avoids Crisis





The bloodbathery in Treasury Bills continues this morning with11/12/15 Bills pushing up to 14bps (from 0bps on Friday). Despite the "hopes" of Treasury Secretary Jack Lew that the US avoids a crisis, he warns "there's no margin for error" and with GOP Leadership talks still ongoing (as Paul Ryan lays down his demands), it appears markets are not taking any chances for now.

 
GoldCore's picture

Insane “Trillion Dollar Platinum Bullion Coin” Option Ruled Out By U.S. Treasury To Avert New Debt Crisis





“If Congress fails to raise the nation’s debt ceiling by [November 3], the US could risk a first-ever default on its obligations”.

 
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