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FX.co ★ Will U.S. face default?

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Forex Humor:::2013-10-14T09:36:00

Will U.S. face default?

Journalists are in constant search for sensations. This is applied not only to the cream of society. Their main task is to find the piece of information that is not widely known yet. This time the piquant bit of news was dug up from the banking field. The uncertainty about a partial U.S. government shutdown starts various rumors. However, this was the “trusted source” of information. Journalists found out that despite their pretentious confidence in the future, some major U.S. banks started serious preparations for a possible default. For example, a top manager said that one bank ordered to increase the amounts of cash in ATMs. This step is usually taken after too high demand for cash appears. What’s more, two other major banks have already launched their anti-crisis programs, just like it was back in 2011. Economists review the restrictions on overdrafts for the people depending on government social programs. Last week the situation became even worse after the release of the U.S. Commerce Department report. It listed disastrous consequences for the U.S. and global economy in the event of further continuation of debt ceiling disagreement. Formally, the U.S. federal government partially shut down on October 1, 2013 due to lack of funds. Members of Congress were unable to reach a compromise on the federal budget for the start of fiscal year 2014. According to the various estimates, the shutdown costs the U.S. $300 million a day in lost economic output.

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