I have kept my article very short and just kept it in numbers format so that readers can make out their own convictions about the US economy and the world market expected behavior in the month of October. Again the time has come when the debt Ceiling level of US economy needs to be raised since payments have to be made. Bipartisan Policy Center analysis. What might happen if US fails to increase the debt ceiling within the time frame, well in that case the drama gets prolonged. This is going to be a short of cash position which would spook the global economy into jittery system. U.S. Treasury bonds are being asked to pay higher levels of premium for their investments.
We are yet to see lot of US drama on the political as well as on the financial markets. This would keep the global markets under tight volatility followed with huge media coverage. But the real fact is that that US have to increase the debt ceiling otherwise would not be able to pay the promises. All the payments are due in the month of October 2013. Some Republicans say Pay bondholders and Social Security recipients first. Some GOP lawmakers add active-duty military to the list. If Treasury doesn't have enough money on hand to pay any of those three things on a given day, some proposals would give Treasury limited authority to borrow just enough to make up the difference. Hence a borrowing plan would be ready in the month of October 2013. Between Oct. 18 and Nov. 15, Treasury is likely to run about $106 billion short of what's owed, according to aUS economy is just struggling to find growth. Whatever Mr. Bernake expected that the economy is growing was a fatal comment which created some gains for the US treasuries. Unemployment is still high, inflation is low and that’s too seasonally adjusted. Housing statistics are just manipulated to create the borrowing consumption living pattern. The question which stands very clearly now is that how long US will print money and how stretched the debt ceiling could be made.
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