How much debt does America really have? Learn about the United States Federal Debt Ceiling & Unfunded Liabilities from New York Times Best Seller Charles Goyette, author of The Dollar Meltdown. http://thedollarmeltdown.com/
Debt Ceiling Defined - as part of the expert series by GeoBeats.
Debt Ceiling Defined
We’ve all heard, and we’ve seen in the news, that our country is reaching its debt ceiling. But few of us really understand what that means, or know how it impacts us personally. So, the debt ceiling, let’s see if we can make it apply in a more familiar situation. Say in your household you have a certain number of credit cards and you have access to certain lines of credit. Well, over time, if you max out all your credit cards and all your lines of credit, basically the creditors, the banks, will say you cannot borrow any more. So that’s the situation we’re faced with as a country; and there are some who argue that we should raise that ceiling, meaning we should be allowed to borrow more, just like going to your own bank and saying, can I please borrow more, because this is a tough situation; and there are others that say we need to not borrow more, we need to focus on paying down the debt. So that’s the general situation, that’s what it means, and it’s going to take a collaborative effort to figure it out, because it’s a pretty complex problem. But we all have to work together, and it will get resolved.
Get the early read on earnings season. Then we set folks straight on what the debt ceiling debate means to investors. Plus top picks of the week.
The markets are pausing today after great earnings from Apple. At this point, all eyes are on the debt ceiling talks. This will determine when the next push higher starts. Financial stocks are rallying sharply today. Graet gains from Bank of America and Goldman Sachs even after they reported sub par earnings. Bottom line is, the financial stocks were due for a bounce. They are getting it in a major way today. Small cap wise, watch ZOOM which is a play off AAPL. AAPL said earnings were big due to China phone sales. ZOOM is a China phone play. ZSTN is as well, that stock has shot up 40% in the last few days.
There is still a standoff between the Democrats and Republicans when it comes to raising the debt ceiling. Everyone is now wondering which side will cave in first. Failing to raise the debt ceiling has really had very little effect on the stock market as of late. Once the debt ceiling is increased the stock markets should see a short term bounce. This morning, the S&P 500 Index e-mini futures are trading higher by 2.25 to 1335.75 per contract. This is basically going to be a flat stock market open. Traders should expect volatility in the markets until a deal is reached in Washington.
Week in review: Scott speaks at random about a variety of topics including Amy Winehouse's passing, the debt ceiling negotiations, Chinese bioengineering, the Cyprus CDS blowout, a leopard attack and more.
Check out the blog for links to the articles he mentions.
August 2, 2011 (2:50)
The U.S.Government has been in heated debate over how to deal with the debt ceiling crisis. Now for better or for worse an agreement has been reached.
Congress finally passed a debt ceiling package. Joe Biden says jobs will now be a priority and president Obama seems ready to cut social security and medicare next. Cenk Uygur breaks it down.
Currency markets almost seem to expect that like most suspense movies that the ongoing debt ceiling deadline will only be resolved when there is a few seconds left on the clock.
The Republicans have finally have caved with a deal done and the House ready to pass the Senate’s deal that delays the debt ceiling and government shutdown till early next year.
Much has been said about how investors should react to the debt debate. And most of it is 100% wrong. Get our take along with top stocks of the week.
Senator Lisa Murkowski (R-AK) may force a cap & trade vote. Her aides say she could bring up the Kerry-Boxer bill, which sponsors are still trying to rewrite, as an amendment to the debt ceiling bill, as a move to discredit climate legislation. EPA Administrator Lisa Jackson is making clear that fighting climate change is her top priority for the coming year. The Obama administration is fighting back against criticism of the stimulus plan with a report estimating that it had saved or created 1.5 million to 2 million jobs during 2009, most of them clean energy jobs. Tyler Suiters speaks with environmental attorney Richard Stoll about potential lawsuits and other legal fallout from the US EPA Endangerment finding.
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As Congress Plans to Raise Debt Ceiling And President is Set to Deliver Budget, What Are the Implications of Our Rapidly Growing Debt? And What Can We Do About It?
WASHINGTON (January 13, 2010) -- A new joint report from the National Research Council and the National Academy of Public Administration offers U.S. leaders ways to address the nation's fiscal problems and confront its rapidly growing debt -- a burden that if unchecked will inevitably limit the nation's future wealth and risk a disruptive fiscal crisis that could lead to a severe recession.
The report offers tax and spending options that would stabilize the debt relative to the size of the economy within a decade. The report also provides a set of simple tests to determine whether any proposed federal budget would lead to long-term fiscal stability.
Delaying action for even five or 10 years will make addressing the problem more painful and costly, requiring even higher taxes or greater spending cuts, the report notes. Delay also raises the risk that the nation's creditors – especially foreign governments – will conclude that the U.S. has no plan to restore fiscal stability and will require higher interest rates or make other economic demands.
"Our committee members have varying political backgrounds and views, but we all agree that future economic prosperity is at grave risk if our nation does not change its fiscal course," said John Palmer, co-chair of the committee that wrote the report and university professor and dean emeritus of the Maxwell School of Citizenship and Public Affairs at Syracuse University. The committee includes three former heads of the Congressional Budget Office -- June O'Neill, co-chair Rudolph Penner, and Robert Reischauer -- and other experts.
Clean Skies News talks to Jeff Holmstead of Bracewell and Giuilani about Senator Lisa Murkowski's amendment that would stop the Environmental Protection Agency from regulating greenhouse gas emissions. Jeff Holmstead helped write the original amendment. Senator Murkowski will speak on the floor tomorrow, January 21, about whether whether she's going to offer an amendment to the debt ceiling bill or file a disapproval resolution.
BY ERIK SHUTE AND HARUMENDHAH HELMY
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First up, world news. The wave of anti-government protest is reaching Libya.
Al Jazeera says demonstrators had gathered in front of a police headquarters in the early hours Wednesday. The police reportedly used tear gas, batons and hot water to disperse the mob. Libya’s ruler, Muammar al-Gaddafi has led the country for 41 years.
The World Bank says food prices are at dangerous levels, pushing 44 million more people into poverty since last June. BBC reports from a protest on food prices in Bolivia.
“Here in Bolivia, sugar prices have doubled since January, and many other basic food have risen by as much as 40 percent more.
Freddy Vilca: “The people are dying of hunger. Today we are fighting against this increase in prices."
“An echo of a protest being heard in developing countries all over the world.”
In U.S. news — the budget wars are taking the spotlight as the GOP threatens of government shutdown.
ABC says the fight has three prongs: first, on what programs to cut next year, second, whether to raise the debt ceiling, and third, whether the federal government will shutdown next month. If the Congress fails to act and agree on a budget, a shutdown is possible.
And in business -- Bernie Madoff is serving 150 years behind bars for his record-breaking Ponzi scheme, but willing to reveal more than ever -- as he opens up in the New York Times.
Madoff is on the record and claims the investors under his scheme were “complicit” and “had to know” something was up. The Times says he “pointed to the ‘willful blindness’ of many banks and... their failure to examine discrepancies between Madoff’s regulatory filings.
In entertainment -- Actor Frankie Muniz’s hopes for Valentine’s Day backfired when the Malcolm in the Middle star allegedly pulled a gun during a heated argument with his girlfriend.
HIs significant other Elycia Marie Turnbow claimed the actor got out a gun and threatened to put it to his head.
When police arrived, they separated the couple and sent Muniz to the hospital. A rep for both parties tells TMZ, “there was an argument, but denies a gun played any part.” On Twitter the couple tweeted liked it never happened -- as they got ready to celebrate V-Day.
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BY ALYSSA CARTEE
ANCHOR ALEX ROZIER
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This Sunday... a top White House advisor says the president is ready to roll out a long-term budget. The GOP’s man-with-the-plan defends millionaire tax breaks... and analysts suggest the key to a 2012 victory is...what else? The budget.
After a buzzer-beating budget compromise for 2011, the Sunday talk shows moved on to 2012. This week President Obama will unveil his long-term budget proposal. White House Senior Adviser David Plouffe tells CNN’s State of the Union the President is open to cuts, as long as they’re focused.
White House Senior Adviser David Plouffe: “So the President clearly believes that we can still grow economically with smart deficit reduction but it’s gotta be smart. If we’re just going to cut student loans, cut head start, cut medical research - we’re not gonna be the country in terms of the economy that we need to be.”
On Fox News Sunday, House Majority Leader Eric Cantor isn’t buying it.
House Majority Leader Eric Cantor (R-VA): “I sit here and I listen to David Plouffe talk about, you know, their commitment to cut spending and knowing full well for the last two months, we've had to bring this president kicking and screaming to the table to cut spending … in my opinion, it's hard to believe what this White House and the President is saying”
Part of Plouffe’s beef with the GOP’s strategy- continued tax cuts for the wealthiest Americans. But the man behind the plan, House Budget Committee Chairman Paul Ryan says- it’s necessary.
“Look we have to recognize the fact that we are in a global competition. We’re competing against China and India. And when we tax our job creators more than they tax theirs, we lose - they win. We don’t want that to happen.”
Democratic political strategist Donna Brazile argues Ryan’s budget isn’t serious.
“The budget itself is a fantasy. It paints a rosy picture that no one will live to see based on the fact that he proposed 5.8 trillion in cuts but also comes out with 4.2 trillion in budget cuts, tax cuts, to make the Bush tax cuts permanent.”
But MSNBC’s Chuck Todd says Dems should be happy about the GOP’s “extreme” budget.
“Look, the Democrats, the White House is licking their chops about it. They are basically saying ‘This is great!’ They can’t believe Pawlenty and Romney and all they guys running for President have signed onto it. They say ‘whoever wanted them as a nominee, they own it.’ And they say ‘Good luck carrying the State of Florida with that.’”
Finally , as bigger battles over the budget brew- CBS Reporter Nancy Cordes says- it’s time to watch the Tea Party flex its muscles.
“And they also showed they were willing to go right up to the brink on a government shut-down to get their way and that’s something they may repeat when it comes to funding the government with the debt ceiling.”
The next move for Congress is to decide whether or not to raise the debt ceiling, or face defaulting on the nation’s Treasury debt. According to CBS, Obama asked for a clean bill and Speaker Boehner responded-- not a chance.
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