# Debt Ceiling and the Market



## liebuster (Jan 6, 2011)

What would happen if the Ceiling is raised and what would happen if it is not???

I'm curious as to what would happen to bonds, gold, silver, commodities, U.S. company stocks, inflation, etc, etc..


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## uscitizen (Jan 6, 2011)

Not much would happen for a while.
Taller debts could walk around with a taller ceiling that is about it.
The loss of jobs is what is taking us down for the longterm.


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## Toro (Jan 6, 2011)

Stocks would crash.

Gold would spike then crash.


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## william the wie (Jan 7, 2011)

In the last two shutdowns stocks went up. Marketwatch has a piece on the subject.


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## BillyJ (Jan 8, 2011)

The thing that will happen is black marketing if the prices will go high , tycon traders will stop the transition of the goods to the market and will stock them until the prices are raised and than sale them at the new price . In short , STOCK WILL BE CRASHED . this way or that .


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## uscitizen (Jan 8, 2011)

Stop the transition of goods to the market???


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## Toro (Jan 8, 2011)

william the wie said:


> In the last two shutdowns stocks went up. Marketwatch has a piece on the subject.



Any threat of a default by the US government would be enormously negative for stocks.


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## Truthmatters (Jan 8, 2011)

Newt played this game in the mid 1990s and ended up resigning in shame after his party lost the congress in the next election.

They just teased at this mess.


These idiots are truely STUPID enough to do this.


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## Truthmatters (Jan 8, 2011)

william the wie said:


> In the last two shutdowns stocks went up. Marketwatch has a piece on the subject.



Dear idiot, the debt ceiling has always been raised.

We have never defaulted on it


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## iamwhatiseem (Jan 8, 2011)

Not much because there are provisions that would continue the government....I believe...10 months if I remember correctly.
We shouldn't be concentrating on the debt ceiling, we should be concentrating on what got is there in the first place - and correct that.


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## KissMy (Jan 15, 2011)

US Corporations depend on Federal Money. You live & work amung communism weather you like it or not. The fed spent over $10 Trillion buying up companies, stocks, homes, student loans for homeless people & bailing out banks.

[ame="http://www.youtube.com/watch?v=J-sQFUucTYI"]Government Owns Corporations[/ame]

If the government would just let the ponzi scheme collapse prices would be so cheap that the average person could afford to live well again. It is your own government propping up the prices of things you buy every day & the home you need to live in. Government is only looking out for their own pensions & wealthy lifestyle. You are their tax & currency manipulated slave.


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## KissMy (Jan 26, 2011)

CBO: this year's budget deficit to hit $1.5T



> A continuing weak economy and last month's bipartisan tax cut legislation will drive the government's deficit to a record $1.5 trillion this year, a new government estimates predicts. The eye-popping numbers mean the government will continue to borrow 40 cents for every dollar it spends...
> 
> The CBO analysis predicts the economy will grow by 3.1 percent this year, but that joblessness will remain above 9 percent this year. Dauntingly for President Obama, the nonpartisan agency estimates a nationwide unemployment rate of 8.2 percent on Election Day in 2012.


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## Jackson (Jan 28, 2011)

If we as a country bite the bullet and push the budget back to 2006 levels, eliminate Dept. of Education, Agriculture, and Energy and Climate, eliminate all discretionary spending, increase SS taxes by 2%, increase retirement age by 5 years in 2030, eliminate Faith Based giving and Endowment of the Arts and leave tax levels as they are... leave debt ceiling as it is....

And have Americans donate to the debt for tax deduction on IRS forms..maybe that would save us?  no?


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## Terral (Jan 28, 2011)

Hi liebuster:



liebuster said:


> What would happen if the Ceiling is raised and what would happen if it is not???



The debt ceiling is a joke, because the real national debt is far above 200 Trillion Dollars (story) and growing by the minute. Just the Unfunded Liabilities Debt number is 112.3 TRILLION dollars (bottom number) and these are only the posted numbers provided by our corrupt US Federal Government. Watch that Unfunded Liability number to realize the USA is going into debt by 1 million dollars about every six seconds on that single debt alone, or about 10 million dollars of debt every minute! Then look over at the Medicare Liability number to realize that is about 78 trillion dollars or more than 5 times the posted national debt. 

If Social Security is solvent until some time in the future, then explain the almost 15 trillion dollars in Social Security Liability that is more than the posted national debt? Again, the Washington hype about raising the debt ceiling is hogwash and political can-kicking down the road propaganda to make you feel like the USA Titanic is still floating on top of the icy ocean, when in reality the whole system is bankrupt and on the bottom of the sea. The corrupt politicians in Washington D.C. are bought-and-paid-for by Washington Lobbyists working for the Open Border Lobby and Wall Street Banksters that are saddling you with a worthless currency and a collapsed economy and more than 200 Trillion Dollars of Debt that nobody can pay off in our collective lifetimes. 



liebuster said:


> I'm curious as to what would happen to bonds, gold, silver, commodities, U.S. company stocks, inflation, etc, etc..



The privately-owned Fed becomes the sole buyer of US debt and prints up more worthless fiat dollars that destroys the value of every dollar in your pocket. Gold and silver prices are currently being depressed by JP Morgan-like Banksters shorting the markets, until the sheeple wake up and realize that the fiat currency wars are destroying personal wealth and everyone runs to buy gold and silver. The day is coming when a gold/silver crisis emerges and people with paper options on precious metals are caught holding an empty bag. The smart people are already in possession of gold and silver (like me) and preparing for when the prices go parabolic straight through the roof. 

The banksters are taking zero percent interest Fed money and buying commodities (oil, gas, food stocks), which drives the prices up for the consumer. Surviving the coming collapse means buying food, guns and ammo first and then investing in precious metals as an inflation hedge, because all the gold in the world is no good; unless you have the lead to protect it. Inflation will lead to hyper-inflation, as more and more money chases fewer and fewer goods and the dollar continues declining in value. That means you need more worthless fiat dollars to buy the same commodities, which will see the stock markets 'melt up' in price, but steadily loose value in comparison to gold and silver. 

Right now we are waiting for the Bailout/Stimulus Bubble to bust, which will cause everyone on the world to run away from dollar-based assets into more secure holdings like gold and silver; which will create the shortage that will make those prices soar through the roof. However, at the same time the price of land will decrease exponentially, as fewer and fewer Americans have any disposable income to make offers on your house and land. 

The time will then come when the smart people will get out of gold and silver holdings into land purchases, as the Govt clamps down on those holding gold/silver reserves with higher and higher taxes. However, all of that said, the biggest threat to your personal security in the coming years will not be from the corrupt fascist government and not from people wanting to steal your gold and silver. The people coming to do you harm during the coming economic collapse will be hungry ... 

GL,

Terral


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## miller (Feb 21, 2011)

liebuster said:


> What would happen if the Ceiling is raised and what would happen if it is not???
> 
> I'm curious as to what would happen to bonds, gold, silver, commodities, U.S. company stocks, inflation, etc, etc..



When you pay your debts your credit is restored.  Loan me money and every time you want payment I'll tell you I raised the debt ceiling.  Only stupid Americans don't know there is no ceiling.  

Only people in a trance can believe one lie after the other.

To answer the question when they raise the debt ceiling the dollar will continue falling, inflation will take off, rates will skyrocket, and stocks will collapse.  This debt fiasco is coming to a nasty end.  At some point they foreclosed on the mortgages.  There will be a foreclosure on America.  

The Chinks quit lending.  See the facts here:
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

The Limeys are lending.  They are busted too.  There's a flim flam with Bernanke and the Limeys.  Also the Feds bought $422 billion so far.  Its all public info that the MSM won't mention.


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## boedicca (Feb 21, 2011)

Toro said:


> william the wie said:
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> > In the last two shutdowns stocks went up. Marketwatch has a piece on the subject.
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This is a red herring threat to scare the public.

The government has Plenty of Money to pay the interest on the debt.  That should be the first priority for disbursements.  Considering that federal spending has increased by over 25%, and Obama is trying to bake in the Stimulus pop into the permanent run rate, it should be quite easy to roll back all spending to 2007 levels.  

Really.

It should.


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## miller (Feb 21, 2011)

boedicca said:


> Toro said:
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Keep dreaming.  It must be nice to be in a trance.  The stimulus ain't working at all.  See this.
Screwed Again: BAD NEWS

Obama is a liar and an idiot with idiots on his cabinet who destroyed America.  They will never admit failure.  Is it fun to be in a trance?


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## Toro (Feb 21, 2011)

boedicca said:


> Toro said:
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It doesn't matter.  Financial markets shoot first and ask questions later.

Financial markets crashed when _Greece_ was on the verge of default.  Greece is nothing compared to the US.   

Paralysis of the government would spook financial markets because the market wouldn't believe the politicians that they would honor the debt.  Competing claims on 1/3 of all government spending accounting for over 10% of the economy would create enormous political pressure and uncertainty, causing a rush to sell Treasury bonds, a spike in interest rates, a collapse of the dollar and a crash in stocks.  If I thought for even a second that this was a serious alternative, I'd sell every single financial asset I had in the US and get it out of the country with a click of the mouse.


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## liebuster (Feb 21, 2011)

Toro said:


> boedicca said:
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Let me know when you plan on doing that.....seriously.


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## Toro (Feb 22, 2011)

liebuster said:


> Toro said:
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> > boedicca said:
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Sure.  But I think there is virtually zero chance of that happening.  If I change my mind, I'll let you know.


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