The last thing they want is the euro to get strong and eat into their fledgling trade surplus and, in general, do its deflationary thing.
But what can they do? Discourage Japan and the rest from buying their member nation’s debt? Not.
Buy $, yen, etc? No- ideologically impossible. Gives the appearance that fx reserves are backing the euro, etc.
That leaves ‘monetary easing’ of some sort that doesn’t directly work, but hopes to scare investors out of euro.
No relation to former Senator Ted Kennedy…
Cruz’ Father Suggests Ted Cruz Is “Anointed” to Bring About The “End Time Transfer of Wealth”
“In a sermon last year at an Irving, Texas, megachurch that helped elect Ted Cruz to the United States Senate, Cruz’ father Rafael Cruz indicated that his son was among the evangelical Christians who are anointed as “kings” to take control of all sectors of society, an agenda commonly referred to as the “Seven Mountains” mandate, and “bring the spoils of war to the priests”, thus helping to bring about a prophesied “great transfer of wealth”, from the “wicked” to righteous gentile believers.”
>
> (email exchange)
>
> On Oct 17, 2013 12:47 AM, wrote:
>
> ”strengthens verification measures” actually more important than it sounds
>
> 1. Another late and politically driven requirement added to an already over-stressed
> technical environment, so could add to the #FAIL;
>
> 2. I’m not sure the current Federal Change can verify income NOW (and how would we
> know they couldn’t) using whatever combination of IRS and credit reporting agency
> data they’re using;
>
> 3. It’s not clear how to add more verification without really draconian measures
> (and these guys don’t want to fund the IRS, so will they privatize it?)
>
> 4. 2014 income has to be estimated in advance. How exactly is that to be “verified”
> in some way more than checking 1040s etc?
>
> 5. Sets up a “fraud” narrative that proved so useful on say voter photo ID
> requirements.
>
> The Democrats had to give them something on ObamaCare, I suppose. But this gift will
> keep on giving.
>
> ObamaCare is such a mess. Such a BIG mess.
>
“Also, the White House supports a provision in the deal that strengthens verification measures for people getting subsidies under Obamacare, spokesman Jay Carney said.
Carney called the change “a modest adjustment,” and said it didn’t amount to “ransom” for raising the federal debt ceiling because both sides agreed to it and the White House supported it.”
Credit expansion is today’s ‘high powered money’ and, as always, the private sector is pro cyclical, and this series just fell to a 6 year low.
And when it slips into reverse it can get ugly quick.
Shutdown is having ‘notable impact’ on mortgages.
By Diana Olick
October 16 (CNBC) — Applications for government mortgage products dropped to a six-year low last week, as negotiations to end the U.S. government’s partial shutdown and avert a debt default rocked back and forth between progress and deadlock.
While total mortgage applications inched higher by 0.3 percent week-to-week, the increase was driven entirely by a 3 percent rise in refinances, according to a weekly survey by the Mortgage Bankers Association. Mortgage applications to purchase a home dropped a wider 5 percent.
Purchase Apps:
Not looking good. And Congress and the President not in any rush either, seems. Still looking to me like they are getting their sense of security from:
The stock market doing ok, believing a balanced budget is a good thing, both sides trying to take credit for this year’s drop in the deficit. Recalling the ‘fear mongering’ in front of the last round of tax hikes and sequesters. Recalling markets bounced back after the Aug 2011 debacle, etc. Voters convinced govt should limit spending to what it takes in.
That is, letting the US go cold turkey to a balanced budget is consistent with their ideology and with current political dynamics.
They are maneuvering only to try to make sure that if it works they get the credit and if it fails the opposition gets the blame.
And I hope I’m wrong!!!
Here’s how you have to think to win a Nobel prize:
Fama’s Fallacy:
There is an identity in macroeconomics… private investment [PI] must equal the sum of private savings [PS], corporate savings (retained earnings) [CS], and government savings [GS]…. (1) PI = PS + CS + GS…. Government bailouts and stimulus plans seem attractive when there are idle resources – unemployment. Unfortunately, bailouts and stimulus plans are not a cure. The problem is simple: bailouts and stimulus plans are funded by issuing more government debt…. The added debt absorbs savings that would otherwise go to private investment…. [G]overnment infrastructure investments must be financed — more government debt. The new government debt absorbs private and corporate savings, which means private investment goes down by the same amount…. Suppose the stimulus plan takes the form of lower taxes… lower tax receipts must be financed dollar for dollar by more government borrowing. The government gives with one hand but takes them back with the other, with no net effect on current incomes…
Eugene Fama
good grief!!!
:(
What’s the rush?
Neither side has any interest in ‘compromise’ nor fears going cold turkey to a balanced budget.
In fact, they all believe we owe it to our grandchildren to do exactly that.
:(
Meeting postponed between President Obama, Congressional leadership
October 14 — A meeting between President Barack Obama and congressional leaders to discuss progress toward a deal to re-open the government and raise the U.S. debt ceiling has been postponed to give the Senate more time, the White House said on Monday.
Obama had been due to meet with Senate Majority Leader Harry Reid, Senate Republican leader Mitch McConnell, House of Representatives Speaker John Boehner, and House Democratic leader Nancy Pelosi at 3:00 p.m. The last meeting between Obama and the congressional leaders was Oct. 2.
Just listened to the video several times.
He offered a short term debt ceiling increase in return for discussions on how to reopen the govt.
That way govt stays closed but no default.
So, it seems they’ve decided to use only the passing of the continuing resolution as leverage, at least until the short term debt ceiling extension expires.
The slow motion train wreck continues…
http://www.cnbc.com/id/101093035