October 15, 2013
The government shutdown continues on day 15 left to the hands of a man from Kentucky and another Nevada. The debt ceiling negotiations are reaching its hallmark within 48 hours. The next, effect in the chain is China the largest holder of debt yet, the if the debt ceiling is not raised the government is subject to operate on cash. The looming question “China calls for dollar to be replaced as global reserve currency” if debt ceiling is not solved.
Among government shutdown talks the tax extensions deadline is today. The negotiations are leaping forward with pending talks that could lead to some closure or await the final day, October 17 to a climatic ending as a big movie thriller.
Los Angeles Times posts, “The Treasury Department has said the debt limit must be raised by Thursday or it will run out of borrowing authority. That would leave it dependent on just cash on hand and incoming revenue to pay the federal government’s bills. Given the world financial system’s dependence on the dollar, a default on payments of interest or principal on U.S. Treasury bonds would be catastrophic for the global economy, analysts said.”
The understanding that “China is the largest foreign holder of U.S. debt, with about $1.3 trillion in Treasury bonds.”
The global impact is the call for the U.S. dollar to be replaced as the national currency. “China has been pushing since at least 2009 for the dollar to be replaced as the world’s reserve currency. The nation has not only called for a new international currency to be developed but also has been taking steps to make its currency, the yuan, more acceptable as a potential alternative.”
Consider, the change in the exchange, rates, economy and the International Monetary Fund impact on the world but more so, the U.S. economy. The recession was taking a back seat to economic recovery despite high unemployment and the eroding or evaporating middle class – the new working poor.
The government shutdown is a wake up call to determining how to operate in this evolving economy where 75% of retirees are back at work. This sustainable effect draws up jobs for youth and graduates. The new economy calls for new strategies to gain sustainability and the first step is opening the government.
Day 15 government shutdown.
Related articles on government shutdown
- Senate leaders hint at looming deal to end shutdown, raise debt ceiling (rinf.com)
- U.S. Default VS. Raising Debt Ceiling: INEVITABLE Economic Collapse Either Way – BrotherJohnF (silveristhenew.com)
- World should ‘de-Americanise’, says China following default fears (telegraph.co.uk)