More News, Rumors and Opinions Monday Afternoon 9-20-2021
KTFA:
Samson: A "historic" financial crisis threatens the United States... and the Treasury is appealing
20th September, 2021
"US Treasury Secretary Janet Yellen appealed to Congress to raise the debt ceiling to avoid a "historic financial crisis
In an article published in the Wall Street Journal, Yellen noted that the United States had always raised the debt ceiling before it was exceeded
The United States has never defaulted. Not once" "Doing so (defaulting) would likely lead to a historic financial crisis". She explained that "a default could lead to higher interest rates, a sharp decline in stock prices, and other financial turmoil"
The debt ceiling, which only Congress can increase, was reinstated on August 1, after being suspended for two years. The current debt ceiling, unless it is raised, prohibits the United States from borrowing more than the current ceiling of $28.4 trillion
The issue usually raises differences between the Republican and Democratic parties, and the debt ceiling has already been raised 80 times since the 1960s. The Treasury Department warned last week that the government will run out of money in October
In her last article, Yellen enumerated a list of potential financial disasters that could inflict on the country if the debt ceiling was not raised and the United States was not able to repay its debts within the specified deadlines
Within days, millions of Americans will be short of cash she said and she continued, "Social security checks may be cut off for about 50 million elderly people. Soldiers' salaries may stop. "We will emerge from this crisis as a temporarily weaker nation
Yellen recalled the 2011 debt crisis, noting that the policy of putting the United States on the brink of the debt ceiling "has pushed America to the brink of crisis. During the crisis related to the debt debate under former President Barack Obama, the United States was closer than ever to default. This prompted Standard & Poor's to downgrade the US debt rating to "AAA", which caused a shock in the markets
Yellen stressed that acting as soon as possible would enable the country to avoid the worst outcomes of 2011. "Time means money in this case, billions of dollars," she wrote. She stressed, "Neither postponement nor default in payment can be tolerated
"The last 17 months have tested the economic strength of our country. We are just emerging from the crisis. We must not completely immerse ourselves again in another avoidable (crisis) LINK
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Courtesy of Dinar Guru
Frank26 the CBI will give the Iraqi citizens all the information about the new exchange rate and the new small category notes and IMO this would happen probably within 2 weeks.
MilitiaMan ...From the amount of convergences we see...the timing is clearly in our favor for an exchange rate change. ...They are openly talking about digitization and with currencies being apart of the future outlook and much more...the new economic environment is ripe to grow and big time! ...The environment will need the exchange rate to be with out occupation. As, in not at a program rate...They even told us that it is inevitable and that they already have it in the cards to evaluate oil pricing in Dinar. A digital transformation that will be global is fully underway and cannot stop, imo...They are going to end the occupation of the DINAR and that means they are to have practical sovereignty over their national product, their currency!!!...
Evergrande isn’t the only reason the stock market is headed for its worst day in 2 months. Here are 7 other reasons
U.S. stock benchmarks were on track to post the worst daily drop in more than two months, with the skid being blamed on the potential collapse of Evergrande. The Chinese property giant is threatening to default on $300 billion in debt that could ripple through global markets.
The Dow Jones Industrial Average DJIA, -2.24%, the S&P 500 index SPX, -2.21% and the Nasdaq Composite COMP, -2.61% indexes were all facing sharp declines at Monday’s open.
However, the sharp downturn by the highly leveraged real-estate sector, which the Financial Times notes makes up more than 28% of China’s economy, isn’t the only problem for markets on Monday.
Here are a few others.
Delta woes
The delta variant of COVID-19 is resulting in higher cases in the world’s largest economy.
Fed taper talk
Markets are fixated on the rate-setting Federal Open Market Committee’s Sept. 21-22 meeting, where Fed officials facing the prospect of removing accommodations that have propped markets up since the start of the COVID-19 pandemic in the U.S., even as the economic rebound looks uneven.
The Fed has been buying $80 billion of Treasurys and $40 billion of mortgage-backed securities each month since last June to keep long-term interest rates low and bolster demand. It said it would maintain the purchases until the economy hit a threshold of “substantial” progress on inflation and the labor market and the question the market is weighing is whether the time for tapering those asset purchases is now.
Debt ceiling
On Sunday, U.S. Treasury Secretary Janet Yellen urged Congress to raise or suspend the nation’s debt ceiling or risk “widespread economic catastrophe.”
Congress has raised or suspended the debt limit about 80 times since 1960, Yellen said, and during the Trump administration Democrats agreed three times to suspend the debt ceiling.
September season
There is a growing sense that valuations are rich and the Federal Reserve’s easy-money punchbowl will soon be yanked away at the worst possible time. Seasonally, September has been one of the worst months for stocks and investors think that the market might trade true to trend.
A correction is due
Strategists think that the market is due for a significant pullback as the S&P 500 has marked more than 200 sessions without a drawdown of 5% or more from a recent peak, making the current stretch of levitation the longest such since around 2016, when the market went 404 sessions without falling by at least 5% peak to trough.
Inflation lingers
Inflation continues to dog markets. Data recently showed that the cost of living for Americans rose in August at the slowest pace in seven months and signaled a big surge in inflation this year may have peaked, but Americans probably aren’t going to get much relief from higher prices soon.
Buy the dip?
Investors have grown accustomed to buying market downturns, referred to as buying the dip. However, Monday’s action, and trading over the past week, suggests that investors are becoming more reluctant to purchasing beaten down stocks with expectations that stock values will resume record run-ups after modest declines.
On Friday, the S&P 500 closed below its short-term trend line for the first time since around June, which could reflect the erosion of buy-the-dip behaviors.
Read the full post here:
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STOCK FUTURES CRATER... Stay Calm, Stay Relaxed.
Greg Mannarino: Sep 20, 2021