MSNBC 1.5 hrs ago 7-23-11

[koko64ko]

This came off of my Home Page - Myway.com

Leaders seek debt deal before Asian markets open

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Jul 24, 5:08 AM (ET)

By CHARLES BABINGTON

(AP) Senate Majority Leader Harry Reid, D-Nev., holds his hand up as he whispers to House Speaker John...

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WASHINGTON (AP) - Congressional leaders planned to work on a fiercely hot Sunday in Washington to try to reach a bipartisan accord to avert a debt-ceiling crisis on Aug. 2.

Aides will be darting in and out of meetings in the usually empty Capitol. Top leaders of the House and Senate will be conferring as well. House Speaker John Boehner, R-Ohio, said he wants to announce the outlines of a plan by 4 p.m. EDT Sunday, to assure investors of the nation's financial and political stability before Asian stock markets open Monday.

Boehner met Saturday with President Barack Obama to try again to find a balance of major spending cuts and revenue increases that could win passage in the GOP-controlled House and Democratic-controlled Senate. Also at the meeting were Senate Majority leader Harry Reid, Senate Republican leader Mitch McConnell, House Democratic leader Nancy Pelosi, Treasury Secretary Tim Geithner and White House budget director Jack Lew.

The four lawmakers met later in the Capitol, without Obama or his aides. Boehner is seeking as much as $4 trillion in cuts over a decade as a condition for raising the nation's debt limit. Reid accuses GOP leaders of intransigence, suggesting the two sides still have sharp differences.

Despite the looming deadline, White House and congressional officials said several proposals were still being discussed. A "grand bargain" would cut spending by up to $4 trillion over a decade and raise up to $1.2 trillion in new revenues. Other plans envision smaller revenue increases and spending cuts of $1.2 trillion or so.

All the proposals face a basic obstacle. Many House Republicans refuse to vote for higher tax revenues; most congressional Democrats consider higher revenues essential if government spending is to be cut so deeply.

Obama, Reid and Pelosi have said they will not support a proposal that does not solve the debt-ceiling problem at least through 2012. Both parties scheduled top officials to appear on the Sunday TV news shows.

[Rogue Knight]

Hmmm... Sounds strangely like the same situation with our debt ceiling in 1991 when the Kuwaiti Dinar had it's RI.

Edited July 24, 2011 by Rogue Knight

[Kanga]

If no deal is reached by that time tomorrow, I and other traders will short the USD once the Asian markets open and forex is active. We know that if no deal is reached it will cause the USD to lose value as people will have no confidence in it. So, traders will start betting against it. People will dump their USD for other currencies like EURO, GBP, CHF etc. First it will start with Asia since they open first tomorrow and it could turn into a chain reaction sending the USD into a big down trend. Then imagine what would happen Monday when markets open in the US and agencies start downgrading our credit rating. Without a deal soon it will be a big disaster for the USD.

What if this event happens and a month later we are still paying off the debt as we cut silly programs to balance the budget.

Not likely, but it is possible :P .

[nemesis760]

http://www.icj-cij.org/homepage/index.php

Link to the World Court, better known as "The International Court of Justice". I'd love for someone to show me the article/ruling, etc. that hitman has referred to. I did not find one link or article, ruling or posting within this site stating or eluding that the world court has given the US any kind of an ultimatum regarding the debt ceiling (re RV basket of other nations, including Iraq).

I scoured that site, found nothing. Maybe they were referring to the Justice League, and if so, does this mean we can only cash in at Wayne Enterprises!?!?

[Alex38]

I revalued my drinking habit last night. GO RV!!!!!!!!!!!!!!

[Moses]

If no deal is reached by that time tomorrow, I and other traders will short the USD once the Asian markets open and forex is active. We know that if no deal is reached it will cause the USD to lose value as people will have no confidence in it. So, traders will start betting against it. People will dump their USD for other currencies like EURO, GBP, CHF etc. First it will start with Asia since they open first tomorrow and it could turn into a chain reaction sending the USD into a big down trend. Then imagine what would happen Monday when markets open in the US and agencies start downgrading our credit rating. Without a deal soon it will be a big disaster for the USD.

GPCarter,.. let me take the other side of this and get your thoughts.

Have we reached the end when doing the responsible thing gets punished?

Will you really have more confidence and "buy" if we stop spending, develop a budget which btw is nearly 2 years overdue, and have a rational discussion about whether programs are efficient?

I would suggest that you sit it out a bit, the markets have been trading Technicals for too long now.

Underlying fundemantals will always bust out any prolonged coercive pressure,..

Strong money, the type that created the "Run" in Aug 08 does exist, I am not denying that, but doesn't it only take steady pressure to topple that type of alliances resolve?