BACKDOC: WELL, WELL HERE WE GO GUYS! (See Article Below)
THIS IS THE FIRST BIG CRACK IN THE ICE ON “THE MAIN EVENT”! THUNDERHAWK SENT ME A SIMILAR ARTICLE EARLIER AS HE IS ALL OVER THIS AS WELL NOW!
WILL THE DEBT LIMIT BE RAISED?
OF COURSE, THE STOCK MARKET THINKS SO AND IT BELIEVES WE WILL HAVE QE4 AS IT EXPECTS THE DOLLAR TO BE DEVALUED THROUGH QE. THAT WOULD JUSTIFY A HIGHER STOCK PRICE.
BUT WHAT WILL HAPPEN AS THIS BEGINS TO PLAY OUT DURING THE NEXT WEEK AND THEY DON’T ACT? RIGHT!
CREDIT WILL SEIZE UP ENTIRELY AND AN ACCIDENT COULD OCCUR.
WE HAVE ALREADY BEGUN TO SEE THE EARLY SIGNS OF THAT STARTING TO HAPPEN!
REALIZE AS THIS CONTINUES TO GO FORWARD IT WILL GET WORSE UNTIL IT IS A LONG TRAIN RUNNIN OUT OF CONTROL.
WE ALREADY SEE OBAMA MAKING DESPERATE MOVES TO DEFUND AMTRAK. LET’S NOT FORGET THE MASSES OF PRISONERS THAT WERE RELEASED ON MINOR DRUG CHARGES!
WITHOUT RAISING THE DEBT LIMIT THE GOVT. CAN’T SELL BONDS TO PAY OUR OVERSPENDING!
IT MIGHT NOT BE A COINCIDENCE THAT PAUL RYAN, A FISCAL HAWK HAS BEEN SELECTED BY THE REPUBLICANS TO RUN FOR THE EMPTY HOUSE SPEAKER POSITION!
HOW CONVENIENT NOT TO HAVE A SPEAKER IN PLACE AT THE CRITICAL TIME! MMMMM
Backdoc: Treasury postpones bond auction as debt limit deadline approaches
The Treasury Department on Thursday postponed an auction of government bonds scheduled for next week because of concerns it would not be able to complete the sales because the nation is up against its debt limit.
The delay is the first related to a debt limit standoff since 2004 and a sign that the latest impasse is starting to affect government operations and financial markets.
The Treasury Department said Thursday that the standoff was “now adversely affecting the operation of government financing” and increasing its borrowing costs.
Treasury Secretary Jacob J. Lew has warned lawmakers that they need to raise the $18.1-trillion debt limit by Nov. 3 or the federal government risks a default. But congressional Republican leaders and the White House have been unable to agree on a debt limit increase.
Interest rates on U.S. government bonds that mature in November have increased compared with those maturing in October or December, the department said, indicating that investors are concerned that the debt limit fight could delay payments.
This week, Sen. Charles E. Schumer (D-N.Y.) cited those increases, which influence other interest rates, as a sign that “the consequences of brinkmanship and waiting until the 11th hour are already upon us.”
“People have to pay more for mortgages, people have to pay more for car loans, people have to pay more for student loans, small businesses have to pay more,” he said. “It’s gone up some, it’s going to keep going up more.”
An auction of two-year Treasury bonds was scheduled for Tuesday, with those sales becoming final on Nov. 2. But Treasury said there was a risk that it would not be able to complete the sales because of “debt limit constraints.”
Nov. 2 also is the day that sales would become final for upcoming auctions of five-year and seven-year bonds.
Treasury said it opted to postpone the two-year auction so that it would have enough money to complete other upcoming sales of longer-term bonds. Postponing those other auctions would have posed more risks for “market functioning,” it said.
“The Treasury [bond] market is critical to efficient funding of the federal government,” the department said. “Disruptions to this market can be costly to the U.S. government and ultimately the American taxpayers.”
The auction of two-year bonds would be rescheduled once the debt limit is raised, the department said.
The federal government technically hit the debt limit in March, but Treasury officials have been using accounting maneuvers to continue borrowing.
Those measures will run out on Nov. 3, putting the federal government at risk of default in the following days.
On Wednesday, the House passed legislation that would allow the Treasury to exceed the debt limit to pay principal and interest on government bonds as well as make payments to Social Security recipients.
But the bill has no Democratic support and President Obama has promised to veto it, arguing the debt limit should be raised so the federal government can pay all its bills.
Republicans want future spending cuts in exchange for agreeing to raise the debt limit. But Obama said he would not negotiate over the debt limit because the increase is needed to pay for spending that Congress already has authorized.
BACKDOC: Largest group of House Republican conservatives endorses Ryan
The largest group of conservatives in the U.S. House of Representatives, the Republican Study Committee, said on Thursday it was backing Paul Ryan for House speaker.
“He (Ryan) has the policy expertise, conservative principles and strong values we need in our next speaker,” Representative Bill Flores, chairman of the group, said in a statement.
The Republican Study Committee has more than 170 members, comprising more than two-thirds of House Republicans. They met with Ryan on Wednesday and afterward voted overwhelmingly to endorse him for the top spot in the Republican-led House, the statement said.
BACKDOC: WILL THE FED START TO WAVER SOON?
STAND BY THIS SAME BACKDOC CHANNEL AND SAME BACKDOC TIME! HEE HEEE
J+C: Backdoc what do you think about this? Obama vetoes defense bill in high-stakes showdown over spending
BACKDOC: WE HAVE SEEN ARTICLES THAT I SHARED THAT TOLD US THAT THEY HAVE ENOUGH VOTES TO OVERRIDE OBAMAS VETO!
WE WILL ALL WATCH THE MAIN EVENT UNFOLD!
GRAB SOME POPCORN!
REMEMBER, IF THEY DON’T RAISE THE DEBT LIMIT CHOICES WILL BE FORCED ON OUR GOVT. WHAT IS THE MOST IMPORTANT BILLS TO PAY!
ONE OTHER SOLUTION IS TO LAUNCH THE DINAR SO THAT THE TREASURY CAN USE THE MONEY TO PAY BILLS WITH IT. DOC IMO
Thunderhawk: Good Evening Everyone HUGE QUESTION DOC?
Does this move by the HSBC might have anything to do with the euro?
MMMM I WONDER
US emerges as potential headquarters for HSBC
The US is emerging as a serious alternative to Hong Kong as the possible headquarters for HSBC, as Europe’s biggest bank by assets considers shifting its base out of the UK.
HSBC fired a warning shot to British politicians in April by announcing a review of whether to leave the UK two weeks before the general election. Shareholders welcomed the review, which was driven by concern about excessive tax and regulation.
The UK political climate has shifted in favour of the City of London since the election, with HSBC winning a notable concession on the bank levy, a sector-specific tax introduced by the UK government after the financial crisis.
But one lawyer who met executives from the bank recently said they felt the attitude of the Treasury and regulators was still hostile.
Hong Kong has long been considered the most likely destination for HSBC if it did decide to move, as the bank was based there for more than 100 years. It still earns most of its profit in Asia.
However, growing concerns about the political risk of the bank ending up under Chinese control have prompted a rethink, according to people familiar with the matter.
Advisers to HSBC say the US is one of the few countries with an economy big enough to be able to comfortably welcome a bank of its size. HSBC has $2.6tn of assets, making it almost as big as the entire British economy. Bankers also view US financial regulation as more accommodating of large universal banks.
Douglas Flint, chairman of HSBC, told the Financial Times the bank was “about halfway through the process” of considering moving its domicile and had “prepared the ground by giving presentations to the board on the various aspects, like the regulatory and economic framework, but we have not had any discussion of the relative merits”.
One top 10 shareholder in HSBC said: “I would say Hong Kong would be the best location as that is where HSBC have their history, but there is political risk in Hong Kong. The US has to be a serious option. You have a more friendly regulator in the way they look at bank capital and they have the balance sheet to take on HSBC. I think the US would love to have a bank like HSBC.”
Another top 10 shareholder in HSBC said: “I think longer term Hong Kong must be the favoured location, if the bank is going to move. But the US is definitely an option too, but I would have said it was the second option.”
Advisers to HSBC said the Chinese government’s interventionist reaction to volatility in its stock market this summer raised doubts about Hong Kong as a destination.
Yet Mr Flint denied this. “As every country reacts to unforeseen circumstances, they learn from what works and what doesn’t. But that doesn’t have a bearing at all on our decision,” he said.
The advisers also said the bank’s 20-strong board was worried about whether a possible move to Hong Kong would upset UK and US regulators, with potentially negative consequences for the bank.
Mr Flint said: “It is not rocket science that the views of regulators would be a subject we would think about. We would have to take that into account.”
The advisers said HSBC was concerned about the potential impact on its deferred prosecution agreement with the US Department of Justice, which it signed to avoid criminal charges over money laundering and sanctions violations in 2012.
One person familiar with the DoJ’s thinking said it would not be happy about HSBC moving its headquarters to Hong Kong. Such a move could also put the bank’s highly prized US dollar clearing licence in the balance, one adviser said.
However, several state-controlled Chinese banks already have US dollar clearing operations, including Bank of China, China Merchants Bank and China Construction Bank. Earlier this year, US regulators ordered China Construction Bank to overhaul its anti-money laundering programmes, including improving customer due diligence on dollar clearing activities.
HSBC plans to update investors early next month on its discussions and aims to decide by the end of the year with a vote by the full board, though Mr Flint said this may slip into 2016.
BACKDOC: WELL, LET ME ASK YOU THUNDER A QUESTION? YESTERDAY WE SAW CALLS BY CHINA CALLING FOR A GLOBAL CURRENCY RIGHT? RIGHT!
WHAT DO YOU THINK THE ANSWER TO THAT CURRENCY IS? RIGHT! THE SDR! WHICH WILL BE LARGELY BACKED BY THE TRN PERCENTAGE WISE.
THE U.S. WILL BECOME A POWER CENTER FOR THE GLOBAL AGENDA!
NO DOUBT BANKS WILL WANT TO BE DOMICILED IN THE STRONGEST RESERVE CURRENCY IN THE WORLD!
WE HAVE HIGH SUSPICIONS THAT THE EURO MAY NOT EVEN SURVIVE SINCE THERE ARE NO ASSETS THAT BACK IT. IT IS BASED ON A TREATY AND ISN’T A GOVERNMENT.
MAYBE HSBC KNOWS THIS AND IS PREPARING TO GET OUT BEFORE THE EURO COLLAPSES!
I ALSO HEARD RUMORS THAT IT IS LOOKING TO DIVIDE INTO TWO COMPANIES, ONE SIMPLE BANKING AND THE OTHER TRADING. THIS MAY PROTECT THE BASIC CORE OF THEIR BANKING! MMMMM
WE HAVE TO WATCH. DOC IMO
GOOD NIGHT FAMILY!!
ALWAYS FUN TO WORK WITH YOU THUNDER!!