debt ceiling

Do I think this is a big deal? No. This move had been telegraphed for weeks. Moreover, the prospect of a double dip recession and a potential lost decade of debt deflation in the US is infinitely more important. The recent rally in Treasury…

The essence of classical free market economics was to restrict Executive power – in an epoch when war-making power was the major abuse of national interests. Just as the lower house of bicameral legislatures had taken over the power to…

We repeat: the “debt problem” is a currency problem and the currency must and will collapse. The global monetary system exists at the pleasure of the Fed, which legally exists at the pleasure of Congress, which as we have learned only has…

Bill Gross was on CNBC yesterday talking about the debt ceiling deal. His first thoughts were about jobs. "There are no jobs in terms of growth. There are no wages in terms of increase… This is a classic de-levering cycle.”

Unfortunately for President Obama, the economy is not doing well. And the cuts envisaged in this deal make that problem worse. From an electoral standpoint this is already becoming a problem in key swing states like Pennsylvania.

The bill passed the House overwhelmingly. The Senate votes today. I will be speaking about the deal on BBC World News at 100PM ET.

Is the PBoC going to stop buying US treasuries? The debt ceiling debate and a potential default have brought this question back into the spotlight. The theoretical and the real world answer to concerns about China and US debt is the same:…

After the US GDP revisions we saw on Friday, it is clear that the US economy is at stall speed. But globally, we are seeing a slowdown in Europe and emerging markets too, especially China. And the fact is monetary and fiscal policy are…

US leaders agree on budget deal, but House vote poses event risk ahead of August 2 deadline. Euro zone periphery benefits from improved market sentiment, but remains vulnerable. Equities and EM FX firm today on US news and stronger than…

The signal we’re extracting from the weekly move of the Four Horsemen is that though concern and the lack of confidence in the U.S. over the debt ceiling issue has increased, other factors, such as the deflationary consequences of a large…