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FX.co ★ USA: our debt reaches records, we easily delay defaults!

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Forex Humor:::2017-09-14T14:08:15

USA: our debt reaches records, we easily delay defaults!

It turns out that not every decision of Donald Trump meets strong resistance in Congress. The recent increase in the debt ceiling became one of the few examples of sympathy and understanding. Congress was surprisingly quick to give an approval on raising the debt ceiling for a three-month period.


However, the threat of technical default is not a tragedy, it occurs with enviable regularity. The US Congress raises the ceiling of the national debt with the same regularity. That is why the market reaction was predictable - interest rates on Treasury bills due on October 5 tumbled. However, fears persist. This is evidenced by the growth in yields of December securities, although, they are not to be sold yet according to experts. The problem is that the forthcoming three-month extension until December 15 is not an extension of the X-Date: within a few months after December 15, the Treasury will still have a cash pile.


In overall, the US economic default is almost impossible in the modern economy. The Department of the Treasury can always raise additional funds, from the G-fund, CSRDF and EFSF among others, or through the issuance of non-marketable securities. In addition, the Treasury has the right to place debt securities for necessary purposes, and avoiding default is a very necessary goal.


In other words, experts say the Treasury will still have money in December, and it will get access to emergency measures, so real problems can be expected only at the beginning of the next year.

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