Congress threatening to shutdown unless ACA is defunded/repealed immediately.

[Mistress Stowastiq]

The debt we've already issued (the treasury bills) are fixed-interest. Already issued debt will not change, it's only new debt (and things like variable-rate mortgages and such) that will have their interest rates jacked up.

Since Fidelity sold of all their short term US debt holdings that expire near the debt ceiling, to protect their investors, I imagine those were somewhat in danger in their perspective. I wonder if people who manage their own portfolios are also advised to do that.

[Kanriel]

Wonder if I should just bank my 401k...all like $1500 of it, lol. Though if hyperinflation follows that won't make any difference whatsoever.

[Drex]

The debt we've already issued (the treasury bills) are fixed-interest. Already issued debt will not change, it's only new debt (and things like variable-rate mortgages and such) that will have their interest rates jacked up.

the problem being that the old debt is constantly being rolled over into new debt, so it is constantly changing into the higher rate when rates are rising. none of that really matters as long as the fed is buying it all - then the question is how long will people accept the currency as valuable?

the more urgent problem for your everyday person is that programs like social security, insurance companies, unemployment benefits, military benefits, the FDIC, state and local governments, banks, pension funds, retirement accounts, etc. all rely on treasuries to function. what happens to them if the US defaults? who are you really sticking it to?

Since Fidelity sold of all their short term US debt holdings that expire near the debt ceiling, to protect their investors, I imagine those were somewhat in danger in their perspective.

you are reading into the decision too much. as awful as it sounds, an asset manager's first priority is retaining assets, and the best way to do that is to not look stupid. the risk of the government defaulting (in their eyes) is most likely very low; however, if it DID happen and they kept the bonds on their books, the resulting roast would permanently damage their image. it's not about being right or wrong: it's about being wrong only when you couldn't see it coming.

[thetruepandagod]

China alone owns $1.2T in treasury bonds, Japan has a sizeable amount as well.

As of july 2012 China had $1.16T and Japan had $1.12T with China dropping by a few billion every month. next highest country was Brazil with 256 Billion.

[Day]

Should have checked last page lol

also i thought the change made it so not even Boner could end it, only Cantor, at least that's what the article I read said.

[Day]

i see

[Acevalefor]

That was posted a couple pages ago. There was no explanation of exactly what was going on though. Thanks for the narrative explaining what exactly rule 22 was.

How exactly does the rules committee have the power to change rules of the House that negatively impact the way the House operates? There is nothing stopping them from just saying "The republicans (in this case, the speaker) get(s) all the authority and the rest of you can stfu."? How does one get onto the Rules Committee? You would think something like that would have to be populated by equal members of both parties.

[Kanriel]

That was posted a couple pages ago. There was no explanation of exactly what was going on though. Thanks for the narrative explaining what exactly rule 22 was.

How exactly does the rules committee have the power to change rules of the House that negatively impact the way the House operates? There is nothing stopping them from just saying "The republicans (in this case, the speaker) get(s) all the authority and the rest of you can stfu."? How does one get onto the Rules Committee? You would think something like that would have to be populated by equal members of both parties.

http://en.wikipedia.org/wiki/United_...ittee_on_Rules

Has it at 9 R's and 4 D's on the committee.

[Acevalefor]

That sounds totally fucked. No wonder Congress can't get anything meaningful done. They are to busy giving each other titles, appointing their buddies to committees and patting each other on the back when not screaming and kicking like a 2-year-old at daycare.

[Quicklet]

Correct me if I'm wrong, but aren't most of the House rules alterable by a majority vote? This is why the majority party in the House wields so much more power over the minority. In fact, I'm under the impression that many of the Senate rules are also alterable by a majority vote, but because it is the slightly (just slightly) more respected of the two chambers, it would be seen as extremely unprecedented to do so on a whim. This is why the "nuclear option" is so controversial. Harry Reid could eliminate the filibuster (at least in certain cases such as judicial nominations) by majority vote, but it would lead to a lot of acrimony and backlash.

[Gokku]

edit not true , but some idiot in texas is saying to do it now lol

[thetruepandagod]

is this SHIT true?

Spoiler: show

I wish

[Mistress Stowastiq]

the problem being that the old debt is constantly being rolled over into new debt, so it is constantly changing into the higher rate when rates are rising. none of that really matters as long as the fed is buying it all - then the question is how long will people accept the currency as valuable?

the more urgent problem for your everyday person is that programs like social security, insurance companies, unemployment benefits, military benefits, the FDIC, state and local governments, banks, pension funds, retirement accounts, etc. all rely on treasuries to function. what happens to them if the US defaults? who are you really sticking it to?

http://cdn.bluegartr.com/images/styl...quote_icon.png Originally Posted by Mistress Stowastiq
Since Fidelity sold of all their short term US debt holdings that expire near the debt ceiling, to protect their investors, I imagine those were somewhat in danger in their perspective.

you are reading into the decision too much. as awful as it sounds, an asset manager's first priority is retaining assets, and the best way to do that is to not look stupid. the risk of the government defaulting (in their eyes) is most likely very low; however, if it DID happen and they kept the bonds on their books, the resulting roast would permanently damage their image. it's not about being right or wrong: it's about being wrong only when you couldn't see it coming.

Ah, I think I know what you mean. So instead of following what they do to and protect their rep, it would probably be more useful if we could see what they are doing in their own private portfolios. If they are also dumping short term US bonds or even short-selling US bonds [like Eric Cantor reportedly did in 2011 when we had the last debt limit showdown and got our downgrade] in their private portfolios, that would be more of a signal for people who manage their own portfolios?

[Cantih]

Eh we're already boned, we may as well just get the default over with so that I can get started on putting together my dystopian future motorcycle gang

I'm late, but man, you are completely on point.
http://thepunchlineismachismo.com/ar...-turns-back-on
http://thepunchlineismachismo.com/archives/comic/1942

[tyven]

I'm late, but man, you are completely on point.
http://thepunchlineismachismo.com/ar...-turns-back-on
http://thepunchlineismachismo.com/archives/comic/1942

holy s that is just wonderful

[tyven]

The Reid and McConnel plan is done and should be released in the next hour. Word is Boehner said he's done putting up hurdles

If house votes first there is a chance this shit is signed by Barry tonight.

[Byrthnoth]

That is good news. Is this the 4 months of funding bill?

[Lordender]

The Reid and McConnel plan is done and should be released in the next hour. Word is Boehner said he's done putting up hurdles

If house votes first there is a chance this shit is signed by Barry tonight.

What a surprise, create 3 weeks of drama, hammer out some backroom deal at the last minute. Then MURICANS go "YAY, THEY DID IT" then they proceed to vote in these same idiots over and over again instead of ousting all of them on both sides of the political discourse.

I hope the Murican voters kick every single one of those assholes out when they're up for re-election.

We know it won't happen, we know stupid Muricans have exalted the demidont's and republicant's to a cult religion status.

[notorious bum]

Oh, the contrary, my friend. Things would have to get much shittier for people to suddenly take time out of their busy days and become politically active.

Gluttony-season is upon us, this will all be but a blur in a few weeks. Never underestimate the American attention-span. It truly is magical.

[Callisto]

I ain't voting for shit, I got stuff to do