Business Insider – Here’s When The US Government Will Really Run Out Of Cash Here is Goldman Sachs’ Alec Phillips explained earlier this month: Since the Treasury usually aims to run a cash balance large enough to cover unexpected payment needs or a revenue shortfall, the Treasury expects to have $30bn on hand the day… Continue reading When Does The Treasury Run Out Of Cash?
Bloomberg.com – Fed Gets Bigger in Markets as QE Prompts New Tools The Federal Reserve is getting more involved in debt markets as it tries to compensate for the impact of its almost $4 trillion balance sheet on short-term interest rates. Policy makers are testing a new tool intended to improve their control of near-term… Continue reading Reverse Repos
Real-Times Economics – Goldman Sachs: The Growing Income Divide in Four Charts Goldman asked the 2,000 U.S. consumers it surveyed how they characterize the current state of the economy compared to a year ago. Households that made more than $90,000 a year reported higher optimism and spending power, while the households that made under $50,000… Continue reading The Rich Get Richer
International Business Times – Debt Ceiling: China Calls for World to Be ‘De-Americanised’ Chinese government mouthpiece says ‘Pax Americana’ has failed on all fronts China’s official news agency has called for the creation of a “de-Americanised world”, saying the destinies of people should not be left in the hands of a hypocritical nation with a… Continue reading China Slams The US
The Wall Street Journal – Uneasy Investors Sell Billions in Treasurys Nervousness Over U.S. Debt Has Investors Unloading U.S. Bonds While leaders in Washington have been chasing a deal to avert a U.S. default, investors and banks have dumped billions of dollars in government debt. In the past two weeks, investors have sold mountains of… Continue reading Selling T-Bills
The Financial Times – Credit default swaps run out of road In 1994, bankers at JPMorgan Chase came up with the canny idea of selling off some of the risk of their loans by striking insurance-like deals with other banks and financial institutions. In return for paying some fees, JPMorgan was able to effectively unload… Continue reading The End Of CDS?
Reuters Larry Summers: Beyond the budget impasse This month Washington is consumed by the impasse over reopening the government and raising the debt limit. It seems likely that this episode, like the 1995-96 government shutdowns and the 2011 debt limit scare, will be remembered mainly by the people directly involved. But there is a chance… Continue reading Larry Summers Speaks
The New York Times – Andrew Ross Sorkin: The Bloodlust of Pundits Swirls Around Jamie Dimon Jamie Dimon should be fired. That seems to be the conclusion of some in the pundit class about JPMorgan Chase’s chairman and chief executive. Writers, editors and bloggers have made it clear that they want his scalp: “NOW Are… Continue reading Fire Jamie Dimon?
Comment Yesterday we hosted a conference call. Below are some links in case you missed it: Handout [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=151″] Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/101013.mp3|titles=Conference Call ] Webcast [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/101013.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /]
Comment Jim Bianco was on Chicagoland TV’s “Politics Tonight” on Wednesday night discussing the debt ceiling. To view the interview, click on the image above. To view any of our recent interviews click here.
<Click on chart for larger image> The New York Times – Floyd Norris: At Risk: Currency Privilege of the Dollar But the McReynolds forecast could come true if defaults become acceptable in pursuit of partisan political advantage. Then the unique position of the United States could erode or even vanish. “To throw that away,” said… Continue reading On The Dollar As A Reserve Currency