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Steve_A · 08-11-2009, 07:47 AM

Hi Everybody,

I just got wind of a very interesting piece of information.

Timothy Geitner went to the US Congress and asked for an urgent lifting if the debt ceiling which congress approves from the 12 trillion or so where it stands at the moment to..... well he didn't actually say.

http://online.wsj.com/article/SB124994128802720681.html

Geitner justified the request of raising the limit by saying that it would ease pressure on the international market, or, in other words, will buy time before countries (China, for example) start wanting their loans back.

The thing is, is that just by requesting what he did surely would have raised red flags on the international scene. I know that if I had lent money and saw that the debtor was looking for strategies to keep afloat, hide the truth or anything else like that, I would be the first in line to get my money back. This isn't rocket science after all.

So what do we get when the US has to balance the books in September? What are we to make of the fact that US embassies in certain parts of the world were quietly asked to buy local currency to last them for a year or so? Why is the Dollar losing ground against softer currencies - even against the Brazilian Real!?

I'm waiting to see how this pans out.

Best regards,

Steve

08-11-2009, 07:47 AM	#1
Steve_A Project Avalon Moderator Join Date: Sep 2008 Location: Northeastern Brazil Posts: 1,259	The Sky Seems to be the Limit Hi Everybody, I just got wind of a very interesting piece of information. Timothy Geitner went to the US Congress and asked for an urgent lifting if the debt ceiling which congress approves from the 12 trillion or so where it stands at the moment to..... well he didn't actually say. http://online.wsj.com/article/SB124994128802720681.html Geitner justified the request of raising the limit by saying that it would ease pressure on the international market, or, in other words, will buy time before countries (China, for example) start wanting their loans back. The thing is, is that just by requesting what he did surely would have raised red flags on the international scene. I know that if I had lent money and saw that the debtor was looking for strategies to keep afloat, hide the truth or anything else like that, I would be the first in line to get my money back. This isn't rocket science after all. So what do we get when the US has to balance the books in September? What are we to make of the fact that US embassies in certain parts of the world were quietly asked to buy local currency to last them for a year or so? Why is the Dollar losing ground against softer currencies - even against the Brazilian Real!? I'm waiting to see how this pans out. Best regards, Steve