USA winning race to default

[PAH]

Looks like August 2nd could be interesting if the yanks continue to disagree on raising their debt ceiling:

BBC News - Republican House Speaker John Boehner quits debt talks

The negotiations are aimed at avoiding what analysts say would be an economically catastrophic US debt default on 2 August.

"If we default, then we're going to have to make adjustments," he said.

Moments later, the president added he remained confident the $14.3tn limit on US borrowing would be raised by the 2 August deadline.

Who owns the $14.3tn debt?

US government owes itself $4.6tn

China: $1.16tn, Japan: $0.91tn, UK: $0.35tn

Wonder what would happen if the yanks default and the UK is 350 billion out of pocket.

[MarillionFan]

Rout on the stock markets for the next week or so and then if they default whooooooooosssssssshhhhhhhhhhhhhhhhh double dip.

Excellent buying opportunities coming up.

[centurian]

Didn't Greece effectively default yesterday.

EDIT : Ratings agencies say they will declare Greece in default after the first "voluntary" (i.e gunshot wedding) renewal of a bond happens on worse terms, so until that happens, they're technically still solvent.

[TimberWolf]

Looks like August 2nd could be interesting if the yanks continue to disagree on raising their debt ceiling:

BBC News - Republican House Speaker John Boehner quits debt talks

Wonder what would happen if the yanks default and the UK is 350 billion out of pocket.

That was the first I'd heard about the US owing us money. 350 billion is quite some small change too, even if it is dollars. I wonder how much we owe them, and what our net debt is when everything is added and subtracted.

[Gonzo]

Looks like August 2nd could be interesting if the yanks continue to disagree on raising their debt ceiling

Isn't this posturing completely normal when Congress is controlled by a different party to the Presidency?

That doesn't mean that it will all end in disaster. Sorry doom-mongers.

[MarillionFan]

Isn't this posturing completely normal when Congress is controlled by a different party to the Presidency?

That doesn't mean that it will all end in disaster. Sorry doom-mongers.

It's called politics.

[PAH]

That doesn't mean that it will all end in disaster.

There's always a first time for the game of chicken to result in a head on collision. Depends what the underlying desire is by both parties. If one of them wants a default to some degree, seeing how Iceland and Greece have faired relatively unscathed, maybe it's not that unlikely.

Seeing as it's China and Asia holding much of the debt maybe the yanks see this as a way of regaining power over them. Would China risk war if the yanks said all the deby they were holding was now worthless?

[PAH]

I wonder how much we owe them, and what our net debt is when everything is added and subtracted.

Maybe net debt is a way of moving forward. Everyone cancels out relative debts so only the net debt remains. Would that be more or less affordable? Might depend on the interest rates in play.

[Freamon]

Maybe net debt is a way of moving forward. Everyone cancels out relative debts so only the net debt remains. Would that be more or less affordable? Might depend on the interest rates in play.

It doesn't work because most government debt is ultimately held by private individuals.

[Freamon]

John Boehner

How do you suppose his surname is pronounced?