Last time the word was the ceiling would not be reached until end of February. No doubt a negotiating tactic, but it is interesting to see it happen much sooner than expected…
U.S. will reach debt ceiling on Dec. 31: Geithner
By Greg Robb
WASHINGTON (MarketWatch) – The United States will reach the $16.4 trillion debt ceiling at the end of December, Treasury Secretary Timothy Geithner said Wednesday. In a letter to Senate and House leaders, Geithner wrote that the Treasury will soon undertake accounting maneuvers to create $200 billion in "headroom" that will delay a violation. It was unclear how long this headroom would last, he said, because tax and spending policies for 2013 are still under negotiation as part of talks to avert the so-called fiscal cliff. Such maneuvers would usually run for about two months, but if a deal on the fiscal cliff is not reached, the extraordinary measures could last longer, according to Geithner. "Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer," he added. Congress must act to raise the debt limit. Republicans have said they want to use the debt-ceiling approval to win concessions on spending from the White House
Good afternoon Jim,
I cannot understand why “going over the fiscal cliff” is a negative for the precious metals. Are there any valid economic or fundamental reasons that support this view?
Based on my daily reading of your web site, it seems to me that the recent price action in gold and silver is a result of deliberate efforts by a few in power to depress prices, with the MSM fully supporting this manipulation and distortion of the market place. What does MSM gain from this?
It is not bearish. The Fiscal Cliff is simply one of the beards painted by the manipulators via MSM to put gold down as they take it down to accumulate.
Merry Christmas Jim!
In addition to Tatanka’s article on derivatives, I used to use this picture in discussions. It has the base of Exters Piramid. Although following the figures from the BIS and see all new Swap arrangements between CB’s, I can hardly imagine all is in there. Nevertheless these figures are already beyond any imagination and even far beyond the point of no return.
Your following few days ago: "It will not last because it cannot last. That which destroys everything it touches must end up destroying itself. That is axiomatic." seems to comply with the Cosmic Dance of Shiva Where the tipping point of reversal has taken place already or soon will be. (Ying Yang picture).
Have a good time with family and your pet friends!