US passes its own debt limit. Economic collapse to infinity.
Published time: July 26, 2013 11:13
Edited time: July 26, 2013 12:05
US Treasury Building in Washington, DC (AFP Photo)
The US Treasury has already exceeded the federal legal borrowing limit of $16.7 trillion in May. That signals the main structural problems remain unresolved putting at risk the fragile recovery.
The country’s outstanding public debt is already $38.82 million above the statuary debt ceiling and now at $16,738,220,000,000.00, according to Treasury data.
Christopher Weafer from the Economist Macro Advisory Consultancy says the numbers show “that the debt issue along with the deficit is two very structural problems in the US that remain unresolved and without any clear mechanism on how they are going to be resolved”.
“In the short term it doesn’t cause any immediate crisis and that’s why I guess the news is not widely covered, ” Weafer told RT.
The American economy grew at 1.8 percent during…
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That was pretty much expected. We set new records every month.
I think the key will be gold.
The dollar as global reserve currency is supported by US military power and US military power is supported by the dollar as global reserve currency. Technically there is no upper limit to the debt as long as that duality remains true and it will remain true as long as there is no alternative reserve currency.
However USG is an increasingly erratic rogue state.
China, Russia etc can’t contain USG militarily so there only option is to take down the dollar and replace the global reserve currency with something else.
Hence China buying all the gold that’s been stolen from the Federal Reserve over the years.
The Chinese don’t want to float their currency as it would instantly turn into the global reserve currency and appreciate massively hurting their exports but they must be close now to the point where they *could* take down USG in a day.
Personally i think this currency collapse scenario is the most likely. It doesn’t chaneg all the MW stuff you talk about as all that would be just as useful in a currency collapse.