UncleJesse Loc: Hazzard Co, GA

The full faith and credit of the United States has been a given: The safest place to put your money is in US debt because we always pay. World finance agreements, from local government pensions to mortgage rates for Asian condos, depend upon one thing – the word of the United States of America. Written on the sale of debt is the promise from the United States of America that the buyer will receive a certain interest at a certain date.

If that promise is broken with a failure of next week’s debt ceiling, what will become the new standard? No one knows for sure. Some believe that US debt will still be the global standard except that interest rates, bankers and the stock market will take a short-term hit. Others believe US debt will be replaced by gold, some think the Euro or British pound. However, Chinese bankers have been pushing since 2009 that a new global system in the International Monetary Fund should replace US treasuries. He has been gaining support from South America to Turkey, Asia to Eurozone. Zhou Xiaochuan may get more international support next week.

Talk of forcing a repeal of obamacare for a refusal to raise the debt ceiling is bad advice for America due to the consequence - Global Government Control of the American economy. This is far worse than having obamacare. Obamacare is a law that can be changed like any law can. The freedom in the United States of America that having a global standard of US debt affords however, cannot be restored if we have to succumb to the rates of a Chinese controlled international monetary fund. We don’t appreciate this exceptional benefit, threatening it when faced with the hard work required to repeal a law. We have become a society that prefers quick schemes and loop holes over hard work, while c*******t patiently wait for us to reveal an opportunity to seize control. It is ironic, focus on the small personal liberty gain to make a bad choice (i.e. not buy health insurance) yet miss the monumental importance of being able to pursue the American dream because US debt is a global standard.

http://abcnews.go.com/Business/story?id=7168919&page=1

http://www.sde.org.tr/en/newsdetail/does-the-international-role-of-the-dollar-face-a-serious-challenge/3342

http://www.cnbc.com/id/100560227

http://www.bibleprophecyblog.com/2012/04/chinese-yuan-and-one-world-currency.html#

http://www.euromoney.com/Article/2904332/Press-release-Chinas-Zhou-Xiaochuan-announced-as-Euromoneys-Central-Bank-Governor-of-the-Year.html

Geno36 Loc: Texas

There is plenty revenue available to pay the interest on the debt. There is no possibility of default. This is Obama and MSM hype.

UncleJesse Loc: Hazzard Co, GA

For all the pundits who think the market is controlled by reason and technically accuracy, stop and think about some points such as these:

1. Just the hint of doubt of missing the date the USA has promised is making their value drop – it doesn’t matter whether there is or isn’t enough money there.

2. Buyers remember getting burned from the 2011 S&P downgrade – some are trying to anticipate a similar affect.

3. The discount on bills to be paid on Oct. 24 has grown by 400 percent since the beginning of the month; on Wednesday, it jumped 24 percent.

4. The market doesn’t forget getting burned in 2008 when politicians promised that they’d bail out the banks then the GOP House made the same argument as now, “It’s all MSM hype”. The GOP politicians that believed they knew the market watched helplessly as the market plunged after Washington Mutual failed and Wachovia was forced into sale.

http://www.marketwatch.com/story/treasurys-slip-before-1-month-3-year-auctions-2013-10-08?reflink=MW_news_stmp

You don't think there could be more support for an IMF global standard? Here's more food for thought about the so-called MSM and Obama hype argument:
http://finance.yahoo.com/news/7-debt-default-doomsday-scenarios-120247697.html

grey gringo Loc: South Texas

We won't default. The treasury takes in appoxamately 250 billion per month and the interest on the debt is only +/-25 billion. There is sufficient cash flo to maintain the debt, there will have to be reductions in entitlements but that is something that should be done anyway.

Geno36 Loc: Texas

Your links are just more MSM hype. I wonder if you realize how dumb your point 1 is.

UncleJesse Loc: Hazzard Co, GA

Amazing - point #1 is directly supported by fact ( "treasuries slip before 1 month 3 year auctions" ). This reveals an ignorance but you aren't alone.") Genio, the market response is not solely based on some equation as many are trying to explain in their dismissal of the problem. The market is largely emotional, based on confidence and guesses of what will happen. I see the House made a good choice today. At least it will calm nervous sellers for the time being.

UncleJesse Loc: Hazzard Co, GA

More MSM hype? I don't think so. China didn't wait until October 17th to begin soliciting world support:

“The world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites,” the commentary said. “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated.”
-Xinhua News Agency, China’s leading government-controlled news outlet

http://www.thegatewaypundit.com/2013/10/china-calls-to-end-use-of-us-dollar-as-international-reserve-currency/

We shouldn't have to resort to a new law or Constitutional amendment to prohibit using the debt ceiling as a political strategy. But it wouldn't hurt if politicians would stop pretending a debt ceiling default is not a big deal.