We’ve all heard about magic trillion-dollar coins and other fantastical scenarios to save the U.S. government from finally smacking its head against the debt ceiling, but trying to really understand the whole thing and what we’re in for if something can’t be figured out is kind of intimidating. Which is why we’re really glad someone came up with a “choose your own adventure” type to see exactly what we could be getting into. [More]
Although the idea of a trillion-dollar platinum coin swooping in to be deposited at the Federal Reserve and save us from hitting the debt ceiling is a nice one, it’s just not gonna happen, says the Treasury Department. Even if it did, the Federal Reserve says it wouldn’t accept the deposit anyway so there’s no point in talking about it. Thanks for spoiling the fun, guys. [More]
No, you don’t need to clean out your ears or wipe your eyes in disbelief — the government is really considering minting a trillion-dollar coin in order to give it enough money to pay off its debts. It might sound ridiculous and like something that just shouldn’t or couldn’t be done, but it’s a very real possibility if Congress can’t agree to raise the debt ceiling. [More]
Our corporate cousins at Consumer Reports have released their monthly index of overall consumer sentiment, and it looks like all the worrying about the debt ceiling has caused the sharpest month-to-month drop in the index in two years and the lowest result since December 2009.
Markets opened on an upswing Friday as the labor report came in at 117,000 jobs added for July, higher than the predicted 85,000. The unemployment rate even ticked downwards to 9.1% from 9.2% in June. But the rally quickly evaporated as concerns about the growing European debt crisis and how government spending cuts might stymie economic growth took precedence.
Global stocks fell broadly Thursday afternoon amid worsening concerns about a global economic cooling and a European debt crisis. Each of the three major US indexes were down, deleting all the gains they had made so far this year.
You need a flowchart and a spreadsheet to understand all the different stages of the debt ceiling bill that passed the House yesterday and is likely to pass the Senate today. But let’s not get hung up on who does what to whom at what point, and when that super-awesome “sudden death mode” of spending cuts kicks in. Instead, let’s look at what the debt-ceiling bill means to you and your wallet.
There’s just a few hours to go before the deadline to vote on raising the debt ceiling and steer clear of a federal default. Late Sunday a deal was worked out and the House and Senate are expected to vote on it. Broadly, the deal raises the debt ceiling, reduces the deficit, and avoids a credit default. More specifically… everyone should read the 74 pages of the bill before making a comment about it. If you don’t have time for that, the White House has also released a 1,465 word fact sheet, a “TL;DR” document of sorts for the nation.
The game of political brinkmanship over the debt ceiling isn’t just an abstract battle of wills. If it isn’t raised, you can expect that your credit card interest rate surely will be.