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Washington is a wound for markets that will not heal

It’s beginning to feel a little like that great film, Groundhog Day, starring Bill Murray and Andie MacDowell
But the current Fiscal Groundhog day is no comedy. According to the great Karl Marx, who said "History repeats itself, first as tragedy, second as farce", it is more likely to be a farce.
Six years ago America blew up the world’s financial system thanks to its subprime mortgage mess. And now America is threatening the world’s financial system all over again. The budget and debt
ceiling d
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mag 19 Oct.

You have gone through. Lesson master of fundamental reasoning. Congratulations. Thank you po share this thought

sonjatrader avatar

As Marx said
"No one fights the liberty; to combat the freedom of others. Freedom has existed always, but sometimes as a privilege to some, other times as a right of all."
"Political power is merely the organized power of a class to oppress another."
Well done, you are a really great thinker. Thanks for share to all. :)

mimuspolyglottos avatar

Yeah, people so sure,so sure. Keynesianism starting to turn into Marxism? When I watched M. Moore's SICKO, I asked few Q my yankee friend about the Medc/Medaid in USA and I saw so much fire-breathing, heard so much ph......ks, and made a conclusion to myself that Sicko is simply an ad of medsystem of "Yankeestan". :)))

jezz avatar
jezz 24 Oct.

I read it a while ago, and I have no clue why it isn't in my likelikelike folder :)

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Competitive devaluation by the US? Unthinkable

What an interesting week. The Armageddon that was really never going to happen, surprise, surprise, didn`t happen. The world has been spared the indignity of a technical default by its MVP – but in its place is a feeling of disappointment and uncertainty about the US that I find uncomfortable and not a little unsettling.
The eventual easing of the dollar this week has reflected a muted and slightly numb reaction to the outcome belatedly coming from Washington, and it is now, regrettably going to…
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The US deal, and concerns by holders of its debt

So, at last we have a deal of sorts. In truth, it doesn’t solve any issues, it merely reflects huge pressure to free up government spending, and short term, ensure that America pays its external obligations to its creditors. This sad chapter is obviously not at an end, and we face the spectre of more government by crisis over the course of the next few months. Bad as this is, short term, the long term damage done to US credibility and standing in the world is much more worrying.
At the moment, t…
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mag 17 Oct.

Is true

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10 reasons US government shut down is not bad

Republicans on the Senate Environment and Public Works Committee say there’s a bright side to the government shutdown, listing the top ten reasons:
10. Approximately 15,000 EPA employees are furloughed, making it less likely fake CIA agents at EPA will be ripping off the taxpayer
9. EPA doesn’t have the manpower to raid Alaska mines with armed guards
8. Fewer bureaucrats at the EPA makes it less likely that they’ll make up science on new regulations
7. Former Secretary of Interior Ken Salazar i
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mag 16 Oct.

Thanks Anna.

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Fitch places US on AAA watch negative

Fitch warning they may cut the US ‘AAA’ rating.
Fitch citing the fact that authorities have not raised the federal debt ceiling in a timely manner before the Treasury exhausts extraordinary measures
Fitch says they believe the debt ceiling will be raised soon but that “Political brinksmanship and reduced financing flexibility could increase the risk of a US default”
Say they will resolve the rating watch negative status by the end of Q1 2014
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US issues to be resolved, but at what cost?

Looking at the calmness with which the markets have continued to react thus far, the expected outcome is still overwhelmingly that a deal will be done which opens government and reassures investors that the US is good for its debts. I agree with that, the stakes are just too high for any other outcome; it is the possible legacy of any compromise that concerns me.

Should the Republicans be seen to force changes in existing legislation; amending a law that has been enacted by a democratically ele
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mag 14 Oct.

I agree

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The uncertainty increases in the US debt talks

I’ve just got back home and saw the news of today's announcement that the White House has rejected the Republican's offer of a 6-week hike in the debt ceiling and new budget talks to re-open the government.
There appears to have been yet another twist in the tail after the Republicans repeated their demands to deal directly with Obama after he had refused their request yesterday ( Friday ).
Scrolling through the news it now appears that there has been a private meeting today between the Senate’s…
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DBRS puts US rating under review with negative implications

The smaller ratings agency, DBRS, is considering downgrading the AAA-rating of the US.
• Action reflects the growing risk of a selective default by the federal government on its debt securities
• If the debt ceiling is not raised or eliminated by October 17, it is unclear how the Treasury would operate
• While a low probability, missing payments on selected government securities cannot be ruled out the longer it takes for an agreement to be reached on the debt ceiling, the greater the risk of…
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mag 13 Oct.

Fitch is french company... the question is has made Moodys and S&P ?

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Yen stands out as haven in US debt drama

Yen stands out as haven in US debt drama:
  • The yen has emerged as the preferred haven for investors worried by the stand-off in US debt talks
  • no sense of panic in foreign exchange markets, with investors assuming that US politicians will eventually strike a deal,
  • there has not yet been a general flight from currencies viewed as riskier
  • analysts expect a greater flight to haven currencies if talks drag on and say there is greatest immediate scope for flows into the yen
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