Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing Access Your Profit Alerts

debt ceiling

Article Index

Debt Ceiling 2017: How Congress Created an Even Bigger Problem

debt ceiling 2017

Last week (May 3), Congress averted a government shutdown by passing a stop-gap spending bill.

But investors need to be aware the "debt ceiling 2017" was left unsolved, and that will create a much bigger problem later...

Here's how Congress actually made the debt ceiling crisis even worse and why that's important for investors...

Debt Ceiling 2017 Is More Dangerous Than Ratings Agencies Let On

debt ceiling 2017

On Thursday (March 16), the government's ability to borrow more money will be frozen.

And the consequences could be catastrophic.

But would Congress really let that happen? It's more likely than you think...

How the U.S. Debt Works

U.S. Debt

Policymakers need to start being more honest about how the U.S. debt works.

It's an age-old debate among the members of Congress. How do we cut the budget? How do we reduce the debt?

But that debate is being framed in the wrong way.

Here's what no one in Congress is telling you about how the U.S. debt works...

Debt Ceiling News Today: What the "Clean" Deal Means for the U.S. Economy

Debt ceiling news 2014: The House of Representative passed a one-year extension to the United States' debt limit on Tuesday evening.

Sen. Majority Leader Harry M. Reid (D-NV) has already said he would pass the bill, although Sen. Ted Cruz (R-TX) may demand a 60-vote threshold on the deal. With U.S. President Barack Obama's signature, the nation would no longer face the threat of defaulting on its debt of $17.2 trillion within the next couple of months.

The deal passed by a narrow vote, 221 to 201, with just 28 Republicans supporting a "clean" extension of the country's borrowing power.

To continue reading, please click here...

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...

Will United States Debt Holders Bail on Treasuries?

Since the mid-1990s, China and a host of other foreign governments have quietly acquired one-third of all United States public debt. Foreign holders of United States debt held more than $5.6 trillion in Treasury securities as of August 2013.

But continued debt-ceiling drama in the United States is starting to change that.

Read More…

Four Things the Debt Ceiling Deal Doesn't Fix

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...

A Debt Ceiling Deal May Not Stop a Fitch Downgrade

So we got a deal to raise the debt ceiling, at least until February. But when Fitch warned it might downgrade the U.S. credit rating, it wasn't just talking about the likelihood of the U.S. defaulting on its debt. A Fitch downgrade is not only still possible - it's probable.

Here's why it could happen and what it would mean...

The Most Important Numbers to Know Today 

By themselves, they don't seem to mean much: 630,000, 700%, $3.65 million, 19. But once you see them in context, you'll realize why these numbers matter. Besides, where else can you read about frontier markets, Bitcoins, and a phantom Twitter stock

all in one place?

What a Debt Ceiling Stalemate Will Do to the Market

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...

Here's What Happens When We Hit the Debt Ceiling

We're just a few days away from the debt ceiling deadline and still the buffoons in Washington are more concerned with extracting a political victory than with solving anything. When the best idea is to delay the problem for six short weeks, hitting the debt ceiling is a real possibility.

Brace yourself, because this is what a default would look like...

How to Prepare for the Debt Ceiling Deadline: Oct. 17

While the markets have mostly brushed off the government shutdown, a failure by Congress to raise the debt ceiling within the next week could trigger the kind of meltdown not seen since the 2008 financial crisis. But instead of just hoping Washington averts disaster in the nick of time,

you can take steps to protect yourself...

Why the Government Shutdown Is Good for Investors

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...

U.S. Debt Ceiling Debate: What Will Happen

While the battle over the need to raise the nation's debt ceiling will take place in the halls of Congress, your investments are in the direct line of fire. Here's how this fight will unfold, and what you can do to keep your money out of harm's way...
Read more...

Stock Market Crash 2013: Four Factors Investors Need to Watch

It's bad enough when one storm cloud appears on the horizon to threaten the stock market - much less four all at once. But forewarned is forearmed. Here's what investors need to prepare for...
Read more...