debt ceiling

Don't Fear China and Japan Owning More U.S. Debt

Alibaba buys Yahoo

The U.S. Treasury Department said today (Thursday) that total foreign holdings of U.S. debt rose 1.1% in November to $5.72 trillion, putting foreign holdings 0.1% below the all-time high of $5.76 trillion it reached in March 2013.

In particular, China's holdings reached record levels, increasing 0.9% to $1.32 billion, and so did Japan, which boosted its holdings by 1% to $1.19 trillion. The two countries are the largest and second-largest foreign buyers of Treasury debt, respectively.

To watch the video, click here...

Four Things the Debt Ceiling Deal Doesn't Fix

Time Bomb

Everyone in the Capitol is patting themselves on the back and glad-handing for the news media, rattling on about “fighting the good fight.” Sure, we’ve avoided default… for just 112 more days. Most of us won’t even pay four phone bills by the time the “crisis” gets brewing again. As ridiculous as that fact is, it gets worse. You see, the “Great Band-Aid Treaty” doesn’t actually do anything to address the fundamental challenges facing our economy right now.

Here are the four biggest issues that Congress ducked out on...

What a Debt Ceiling Stalemate Will Do to the Market

10152013KFG1

Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to make projections about what a stalemate on the debt ceiling will do to the market.

We are a little more than 24 hours away from the day that Treasury Secretary Jack Lew has said we'll exhaust the "extraordinary measures" and go over our debt limit. But even with the impending deadline, over the last five days the market has shakily climbed, with the Dow up 2.35%, Nasdaq up 1.16%, and the S&P 500 up slightly to 1.9%.

To continue reading, please click here...

Why the Government Shutdown Is Good for Investors

cheer Q

As of midnight Monday, the government shutdown is upon us. But this is only the first of several budget-battle flashpoints coming over the next few months that will thrash the markets. And despite the angst it will bring, every Washington screwup has a silver lining for investors who know how to play it...

Read more...

Debt Ceiling Bill Nothing More Than a Band-Aid

We have a short-term debt ceiling fix - with emphasis on short term.

U.S. President Barack Obama Monday night signed into law a bill suspending the debt ceiling, a move that allows the government to avoid default-at least until August when Congress will again have to act to prevent such a scenario.

The new law lifts the current debt limit through May 18, allowing the federal government to continuing borrowing to pay its bills until then.

But Congress does have more leeway than the May 18 deadline. The Treasury can use "extraordinary measures" to access funds, which will give it until August before the risk of default comes up again.

To continue reading, please click here...

The Debt Ceiling 2013: How We Got Here, What Could Happen

A new twist to investing and financial planning is averting travesties that the government itself created; first it was the fiscal cliff, now it's the debt ceiling 2013.

The debt ceiling is a part of the way government has to go about doing its business.

However, both sides of Washington have come to use the full faith and credit of the United States of America as a bargaining chip - and the consequences are huge.

But it wasn't always like this.

To continue reading, please click here...

Are Steep U.S. Spending Cuts Inevitable?

Credit card cutting small

U.S. Rep. Paul Ryan (R-WI), the chairman of the House Budget Committee, is adamant Republicans will resist any further tax increases - a staunch GOP stance that makes steep spending cuts almost certain.

Ryan, the 2012 vice president nominee, told NBC's "Meet the Press" Sunday that the $1.2 trillion worth of automatic spending cuts will take effect because "Democrats have opposed our efforts to replace those cuts with others."

In the NBC interview, Ryan took aim at President Barack Obama.

"I don't think that the president actually thinks we have a fiscal crisis," Ryan said. "He's been reportedly saying to our leaders that we don't have a spending problem, we have a healthcare problem. That leads me to conclude that he just thinks we ought to have more government-run healthcare and rationing."

To continue reading, please click here...

Will the Debt Ceiling be Good for Gold and Silver?

Investors preparing for Washington's budget battle need to know: Will the debt ceiling be good for gold and silver?

Thanks to recent legislation passed in the U.S. House of Representatives Wednesday, the debt ceiling could be extended until May 19. The bill now moves onto the Senate where it is expected to get the green light, then should be signed quickly by U.S. President Barack Obama.

That gives investors time to prepare for what any budget decision - or indecision - out of Washington will do for their investments.

While the bill leaves the government without a long-term budget strategy, investors ought to have a plan in place.

One thing they can plan on is higher silver and gold, and here's why.

To continue reading, please click here...