MercoPress. South Atlantic News Agency
Obama announces agreement to raise US debt-limit; Congress has to vote the deal
President Barack Obama announced Sunday Republican and Democratic leaders have reached an agreement on raising the US debt limit and avoiding default. He said the deal would cut one trillion dollars of spending over 10 years, and set up a committee to report by November on a proposal to further reduce the deficit. Read full article
Comments
Disclaimer & comment rulesBloody Hurrah !
Aug 01st, 2011 - 08:06 am - Link - Report abuse 0Quite so. If the US had defaulted there is hardly a country on the planet that would not have been affected. Though, I suspect some damage has already been done.
Aug 01st, 2011 - 09:38 am - Link - Report abuse 0Important to remember that this issue started around November 2, 2010 when Republicans win control of the House of Representatives on a promise to scale back government spending and tackle budget deficits that have hovered at their highest levels since World War Two!
Aug 01st, 2011 - 12:46 pm - Link - Report abuse 0Spend more now and cut later?
Aug 01st, 2011 - 02:38 pm - Link - Report abuse 0I dont like the republicans (even less the radical tea party). But this is no solution at all, raising the limit only causes that the fall will be higher and harder.
Aug 01st, 2011 - 03:38 pm - Link - Report abuse 0The only way to solve the issue is to undo Mr Bush's insane tax reductions for the rich. This is something that killed the US economy, because it didn't bring in the expected result (They thought, the rich would then invest in the industry and create jobs and wealth)
Clinton still had 2 times a surplus during his time, this under current situation is simply unthinkable.
Gosh, I sound like a socialst.... rofl
@5
Aug 01st, 2011 - 04:00 pm - Link - Report abuse 0The only way to solve the issue is to undo Mr Bush's insane tax reductions for the rich .... that's only 770 billion
@5 You have a point. The Democrats' proposal for tax increases was to close loop-holes being exploited by the wealthy and large corporations. An example is GE, I think the largest corporation in the world, pays a paltry amount of tax.
Aug 01st, 2011 - 05:08 pm - Link - Report abuse 0I fully understand that culturally the US is against big government and high taxation but tax avoidance is a huge problem and makes the system unfair.
Chuckle chuckle ™
Aug 01st, 2011 - 06:06 pm - Link - Report abuse 0ManRod, Elaine and Artillero….. all three sound like socialists when opining about the USA.
But still they want to sell us in South America the old, failed recipes of wild capitalism…
Tax revenue is the lowest in 60 years and that's a fact. Tax cuts to the rich does not increase jobs ! and that's another fact. Corporations are showing record profits. Subsidies to oil companies ? and farmers? that's a joke !
Aug 01st, 2011 - 06:20 pm - Link - Report abuse 0There are some things that the market cannot take care, Defense , Education and Healthcare .....
(9) Artillero
Aug 01st, 2011 - 06:37 pm - Link - Report abuse 0Right!!!!
Defense must be left to the Generals....
Education to the Church....
Healtcare to God......
Gosh, I sound like a Pinochetist.... rofl
@10
Aug 01st, 2011 - 06:44 pm - Link - Report abuse 0I don't understand what you are trying to say .....
An Army doesn't make money, does it?
Healthcare: 40 million of uninsured people in the most powerful nation on earth
Education: I don't have to explain , do I?
(11) Artillero 601
Aug 01st, 2011 - 06:54 pm - Link - Report abuse 0Don't you understand sarcasm?
Here is some more for you:
They are not “Wealthy People” nor “Rich People” ……
They are “Job Creators”…..
You communist!
http://latinorebels.com/2011/07/29/once-again-the-daily-show-nails-it-here-is-to-the-job-creators-who-can-no-longer-be-called-rich-people/?utm_source=rss&utm_medium=rss&utm_campaign=once-again-the-daily-show-nails-it-here-is-to-the-job-creators-who-can-no-longer-be-called-rich-people
[] - Artio
Aug 01st, 2011 - 06:59 pm - Link - Report abuse 0estimated 50,000 $ annual wages'...what are the deductions of ;
Federal Witholding : ..........$
Social Security : ............$
Medicare : .............$
i'll be glad if you informe me !
@12
Aug 01st, 2011 - 07:05 pm - Link - Report abuse 0I love Jon Stewart !!! (it doesn't mean that I agree with you) : -)
13@ Single or married and please tell me how many dependents and I will do the calculation for you
@13
Aug 01st, 2011 - 07:11 pm - Link - Report abuse 050k , single, 0 dependents
Net $39,075
Federal withholding $8100
Social Security (employee) $2100
Medicare (Employee) $ 725
Social Security Company $ 3100
Medicare Company $ 725
[] - 14 Artio
Aug 01st, 2011 - 07:21 pm - Link - Report abuse 0married + two chidren !
[] - 15 GA3
thanks mate from Georgia(GA) !
Geo, Artillero601 and Ga3 are the same person :-))
Aug 01st, 2011 - 07:26 pm - Link - Report abuse 0I can only due Texas Geo, sorry
50k, married with 2 kids
Net $42,820
federal withholding $4355
Social Security $ 2100
Medicare $ 725
[] - 17 Artio
Aug 01st, 2011 - 07:38 pm - Link - Report abuse 0my worthy mate ,
i know GA3 = Artillero601
i have a friend in Georgia(USA) has same character as you ...
thanks your replies .
nevertheless,the monthly avarage payments of (home)
natural gas ,electricty,DSL,phone are cheap in US. !
@18
Aug 01st, 2011 - 07:42 pm - Link - Report abuse 0In comparison to what? Argentina?
[] - 19 Artio
Aug 01st, 2011 - 08:05 pm - Link - Report abuse 0as you know that the Argentine( INDEC) numbers are not reliable
in the public sight !
certainly ,Argentina is not comparable with US as the accessibility
in equaly for public using ...this is reality !
-----------------------------------------------------------------------------------------------
I am not from Argentina..
but ,
i have very deep,different relations with Argentina more than
avarage Argentine citizens !
i can say easily that i am very connected in the history of Argentina
since 1960 upto ..today ... future !
For Example :
----------------------------------------------------------------------------------------------
the Montoneros operation was planned in 1960' years...
practised in 1970's years....
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Dear clowns and financial illiterates,
Aug 01st, 2011 - 08:08 pm - Link - Report abuse 0The US is already broke. What it is has chosen to do is kicking the can down the road, a little austerity measure for the people so they can continue borrow. Conclusion it's adding more debt and soon or later it will lose it's (bogus) tripple A rating what it has already lost by foreign government members (who trade outside the dollar and Euro, by trading with their own currencies) and credit rating agencies (Germany and China).
Repeal the bush tax cuts, cut on medicate/medicare/social security isn't enough. Even if they cut in defence (what's not on table and will never be touched) is not enough. The debt is simply unpayble, so their solution is simple. Print print print print and print (create inflation, what is already happening) and try to grow out of it, though the US continues with it's outsourcing of jobs and tax hikes that hinders small business. Remember, Austerity Measures means cut spending (cut services) and rais taxes, though they say: we won't raise taxes, but they do that with inflation what is NOT calculated in the CPI index.
[] - Fido Dido
Aug 01st, 2011 - 08:33 pm - Link - Report abuse 0your name is not serious to discuss serious subjects,,anyway ...
your comment is containing wellknown compiled outlook !
Fed already has made print print print... what happened ? nothing !
@21
Aug 01st, 2011 - 09:42 pm - Link - Report abuse 0I do agree with your statement but it doesn't make a clown nor a financial illiterate ....
she had to do
Aug 01st, 2011 - 10:41 pm - Link - Report abuse 0what was expected of her,
the alternative was to costly to contemplate ?
Bush tax cuts
Aug 02nd, 2011 - 02:06 am - Link - Report abuse 0Farm subsidies
“Defense” spending
Corporate Welfare
Government's protection of US Pharmaceutical cartel
The above are a major cause of the problem, but the above will not be tackled because the people who own America, the top 1%, benefit from them.
Instead, the poor will be expected to pay to keep the rich in luxury, to keep the folks at Goldman, Lockheed, Aetna, etc, rolling in money while the rest of the nation starves and implodes.
Artillero: “that's only 770 billion”
Aug 02nd, 2011 - 12:04 pm - Link - Report abuse 0only? You would consider more then 30% of the total income of the US in 2010 a minor amount?
It's true, that this will not solve the issue, the debts are definitely to high to get rid of them that easily. So the solution would be a mix of :
1. undo/eliminate Tax benefits granted under Bush to companies and the wealthier ones.
2. print money and devaluate, with inflation as a negative aspect, but with potential recovery of competitiveness and loss of nominal value of the debt (Fido's mention)
Just a point here for the ones blaming capitalism:
“State debts till death” is not exactly an instrument of capitalist ideology even some might like it would be like that, it's rather associated to socialist states, which inflate state apparatschnik without productive sustain. Still remember how East Germany collapsed end of the 90, it had huge debts accumulated...
In Southamerica, Chile is being “blamed” the most neoliberal state, interestingly it's also the less indebted, it is even a net truster (if you consider debt against it's sovereign wealth fund)
This because it does not have that huge “ñoqui” lobby
(Argentines will know what I mean)
The whole state debt machinery is based on the “social” pressure to keep companies alive, in order they do not cease operations and fire their employees, so most times inproductive companies are being kept artificially alive. Is this capitalism? No way... capitalism in such a situation would preach to let unproductive companies die.
@26
Aug 02nd, 2011 - 12:39 pm - Link - Report abuse 0770 billion is a considerable amount, don't misunderstand me ....
I know of no one who'd have considered Chile as the most neoliberal state in South America. I've always thought of it as moderately heterodox. It has always had policies to keep a competitive currency - even now, under Piñera.
Aug 02nd, 2011 - 01:01 pm - Link - Report abuse 0By the way, ManRod, socialist countries don't spend on the welfare state nearly as much as capitalist ones: http://andrewsullivan.thedailybeast.com/2011/06/the-irony-of-the-socialist-welfare-state.html
Of course a welfare state isn't something intrinsic to capitalist economies. It is, however, intrinsic to a stable social order. The modern welfare state was created in the mid XIX Europe. It was a response to failed revolutions carried out by socialist militants who wanted to overthrow Europe's monarchies. They were then called democrats - for at the time 'democracy' had a very different meaning from that we use. Be that as it may, they were mostly defeated. The ruling classes, however, were clever enough to realize that poverty among Europe's working classes should still be expected to present a danger to the political order as poor people tend to be specially vulnerable to a socialist rhetoric. For this reason they universalized access to education and took other measures associated with welfare policies. In other words, the welfare state was created to reduce the appeal of a socialist state - not to fulfill it, as some stupid right-wingers believe.
The reason Chile has a low public debt to GDP lies mainly in revenues from copper exports. Venezuela, too, also has a low public debt - though of course this has nothing to do with Venezuela being a model neoliberal economy but instead with its oil revenues.
* lies mainly in
Aug 02nd, 2011 - 01:03 pm - Link - Report abuse 0Chile is welded to the idea of a free market economy. The problem with being such a strong believer is that if you apply this to social issues the weak and poor would be heavily disadvantaged. Hence the need for all countries wishing to be regarded as developed to take care of the old, young, poor and sick.
Aug 02nd, 2011 - 03:24 pm - Link - Report abuse 0On balance I think Chile runs its' economy well and will address the social issues in time.
[] - 28 Forget ....[]-30 Elaine
Aug 02nd, 2011 - 03:32 pm - Link - Report abuse 0BUT ;
CHILE 's Real Sector has ~ 58 Billions $ external debts ..
ARGENTINA's Real Sector has ~ 36 Billions $ external debts ..
[Real Sector = NonFinancial + Non Government]
From ManRod's comment I gather he was talking about public debt, since he was discussing the sustainability of the welfare state. And Chile's public debt is indeed extremely low (less than 10% of GDP, the last time I checked). I can only assume that its relatively high external debt is mostly private and corporate in nature.
Aug 02nd, 2011 - 03:39 pm - Link - Report abuse 0[] - 32
Aug 02nd, 2011 - 03:52 pm - Link - Report abuse 0CHILE's Banks have ~ [22 Billions $] external debts ..
ARGENTINA's Banks have ~ [4 Billions $] external debts ..
Yesterday, the US Treasury Secretary Mr. Geithner said he is not sure whether the debt agreement issue by the US Senate will avoid a downgrade of the U.S. top-tier credit rating. Very interesting point....
Aug 02nd, 2011 - 03:55 pm - Link - Report abuse 0I think the US probably should lose its' AAA credit rating simply because if they can hold the world's economy to ransom over political squabbling they show themselves to be unreliable. That said, I believe the credit rating agencies are US based and one can imagine the pressure on them not to do so. They have not been above being 'persuaded' before.
Aug 02nd, 2011 - 04:19 pm - Link - Report abuse 0Personally, I think the credit rating agencies are highly suspect. Look at their track record.
Geo:
Aug 02nd, 2011 - 04:30 pm - Link - Report abuse 0CHILE 's Real Sector has ~ 58 Billions $ external debts ..
ARGENTINA's Real Sector has ~ 36 Billions $ external debts ..
CHILE's Banks have ~ [22 Billions $] external debts ..
ARGENTINA's Banks have ~ [4 Billions $] external debts ..
So is the economic situation in Argentina better in that aspect according to your figures then?
Geo, don't know where you got your sources for this, but in case this should be real, it could be easily associated to the reason that nobody or very few (like Chavez) abroad is willing to lend Argentina money. This might be the reason why the external debts of the real sector there is much lower. For the Bank sector it's totally clear in that aspect, the trust abroad isn't that big, to say it that way. Check the international Ratings for Argentina.
Furthermore you must consider the market capitalization of both countries, in Santiago there is a market capitalization of arround 335 Billion US dollars (3rd biggest in Latin America behind both giants Brasil and Mexico), while in Buenos Aires it's about 59 billion.
http://www.fiabnet.org/inf_mensuales/IM-jun2011.pdf
Chile almost equilizes Mexico in amount of biggest transnational companies of LA in the top 50 or 25 (don'tremember any more). Of course if there is a bigger mass, the possiblity to increase debts (nominally) given.
But coming back, we have been talking about the public sector, as this article is talking about the states responsability. From this point of view, Chile has stick to the policy of saving money with the 1% surplus fiscal rule in the normal times to build up a security pillow for bad times.
Credit ratings agency Fitch have already confirmed the US AAA rating.
Aug 02nd, 2011 - 05:15 pm - Link - Report abuse 0@34 True !
Aug 02nd, 2011 - 06:55 pm - Link - Report abuse 0Is he resigning? what do you think?
[]- 36 ManRod
Aug 02nd, 2011 - 08:06 pm - Link - Report abuse 0don't trust the bourses which can not reflect some realities..
i'll give you some details where a country ,how is looted,deceived,plundered....at the Chile Reality
these are their (CHILE) formal numbers not mine !!
IN = indicates the money entering into country
OUT = indicates the money outgoing from country
---------------
note :Direct Investments have not any problems !
-----------------------------------------------------------------
FINANCIAL DERIVATIVES ( millions $)
2008/ - 12,660 (IN) ..... 11,708 (OUT)
2009/ - 8,945 (IN) ....... 8,650 ( OUT)
2010/ - 9,759 (IN) ........8,836 (OUT)
means that ; ( A)
THE SHORT TERM MONEY ACCELERATED INTO BOURSE
**************************************************
PORTFOLIO INVESTMENTS ( millions $)
2008/ - 2,633(IN) ....... 10,252 (OUT)
2009/ - 1,922 (IN) .......13,691 (OUT)
2010/ - 9,432 (IN) ......16,503 (OUT)
means that ;(B)
THE BIG MONEY HAVE BEEN TRANSFERING ABROAD
---------------------------------------------------------------------
(A) +(B) = D I S A S T E R (step by step )
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you say guillotine ??..or some officials +credit agencies !!
Artiller, did I mentioned your name? No. Some people here know exactly how financially illiterate they are + stuck with their head in the sand not to face reality. I have typed their names before.
Aug 03rd, 2011 - 04:42 am - Link - Report abuse 0Geo, neither is your nick a serious one to take serious. If you care about my comments, don't look at my nick (Fido Dido is a dude from the sprite/coca cola marketing to serve the people more kool-aid soft drinks, perhaps you don't know because you weren't even born), but read what I type and do your damn homeowork yourself if you want to take serious or not.
As for the debt ceiling talk, it was just bogus. They have raised it many times without problems. Why did they do it? It's for another bailout + they want to cut on the services of the people. That's all what they wanted and got, because we here in the US are all going to die if we don't give the banksters more money + the want us to keep borrowing more, because that's how they make money.
“Credit ratings agency Fitch have already confirmed the US AAA rating”
Elaine, False! Moody's has it on negative. drudgereport.com (there is where all media get some of it's sources). That means, they will downgrade the US (bogus) tripple A soon or later, with or without raising the debt ceiling. Why? Because the riskier it gets, the more money they make. They don't care about the name (USA) it's all about making a quick buck.
It unthinkable/unimaginable is suddenly not only thinkable/imaginable, but it's becoming reality. Once a great nation, became such a powerful empire is now seeing it's “status” fading away. That's what you get when your debt is owned by foreigners + private banksters who controls the money supply + government leaders (campaign donation = bribery).
you say (gold and silver +) guillotine ??
yesssssssssssss.
[]- 40 Fido
Aug 03rd, 2011 - 09:23 am - Link - Report abuse 0agree ! no doubt !
---------------
[] - ManRod
Did you convince how [the money laundering machine] works (#39) !?
geo@ 39 and 41. Convince? Do you really think that based on that figures you can define the world in black and white and answer all your doubts ?
Aug 03rd, 2011 - 12:24 pm - Link - Report abuse 0I think you haven't really noticed the real meaning of this portfolio investment statistics. Especially considering what I have just mentioned before with the chilean transnationals (LAN, CENSOSUD, ENAP, ANTARCHILE, CCU, CONCHA Y TORO etc...).
Of course big amounts are “leaving” our country like you indicate, but you know what? It's partly money of the investors abroad (mining), but the mayor part of the cake is money from our companies and AFP's and going on a buyout in the region and permanently expanding (especially Peru, Brasil, Argentina and Colombia) because Chile with a population of 17 million has become a too small market for them. So what you can read out of this statistics, also reflects why you in Argentina are for example buying in Chilean megastores and retailers which are among the biggest in Latinamerica (In Argentina: Falabella, Tiendas Paris, Johnson's, etc...), you buy in Chilean owned supermarkets or homestores (In Argentina: Disco, Super Vea, Jumbo, Easy, Sodimac, Blaisten, etc..), or even you believe you are proudly drinking Argentine wine you probably don't know that Chileans posess 15% to 20% of the argentine wine production ( for example big names like Trivento, Kaiken, La Celia which are all in the top 10 of exporters in Argentina and other 12 brands).
-You don't like wine, and prefer other beverages? No problem
CCU with its subsidiaries CICSO is the second biggest producer/seller in Argentina behind Quilmes and in front of brasilian investors.
-Wanna visit your relatives far away in another part of Argentina? probably you might fly with LAN Argentina, who holds 30% of the national market.
We could continue with this in other markets: electricity, construction, mining, etc... but I think you get the point.
42 ManRod
Aug 03rd, 2011 - 04:35 pm - Link - Report abuse 0Why did they name this good wine Concha y Toro?
@ 43 Marcos Alejandro:
Aug 03rd, 2011 - 07:11 pm - Link - Report abuse 0better Concha y Toro than Concha de Toro, not? Hehehehe...
It's the name of the founder 125 years ago:
Don Melchor de Santiago Concha y Toro
[]- 42 ManRod
Aug 03rd, 2011 - 08:03 pm - Link - Report abuse 0USA has CocaCola...WalMart...Boeing...Pfizer.....all others too !
but
you watch the view .....don't you !?
sure geo, but coming back to the main theme... USA might be as powerful as it can, it's public debts break the 100% GDP barrier with rocket tendence and a expense budget double as high as their income, while our public debts are not even 10%, with falling tendence and a budget often with a surplus.
Aug 04th, 2011 - 12:28 am - Link - Report abuse 0USA might be a powerful nation, but their attitude of responsability is one of a banana republic.
44 ManRod Jajajaja I agree, now I know. As a matter of fact today I had a Casillero Del Diablo(Concha y Toro), rico el vino con el asadito.
Aug 04th, 2011 - 04:36 am - Link - Report abuse 0nice one marcos, I had one (Cabernet Sauvignon) @ an asado last weekend with marvelous argentine meat (very thick one, then tastes the best)
Aug 04th, 2011 - 07:28 am - Link - Report abuse 0It's a well fitting combination...
Indeed.
Aug 04th, 2011 - 04:06 pm - Link - Report abuse 0@48 & @ 49
Aug 04th, 2011 - 08:14 pm - Link - Report abuse 0and How is Mr O fit in this “homo” conversation between you two? :-)))))!!!!!!
Don't worry Manuel, Artillero is a jeaulos milico kicked out of Argentina and now melting in the humid Texas heat :-)))))))
Aug 04th, 2011 - 11:31 pm - Link - Report abuse 0@51 kicked out ?? who kicked me out?
Aug 05th, 2011 - 01:58 pm - Link - Report abuse 0Hay que ser muy macho para bancarse 115 F Marquitos !!
Oooppsss looks like or either I hit a nerve; the Texas extreme heat got to someone o se acabaron los ñoquis que le dejo la vieja en el freezer :-)
Aug 05th, 2011 - 03:18 pm - Link - Report abuse 0PS “Lo que” la 115? Con los tanques de la RC Tan2 le pasamos por encima a esos tira cohetes :-)
jajajajaja!!!! los ñoquis de la vieja estan en reserva Marcos !!!
Aug 05th, 2011 - 03:49 pm - Link - Report abuse 0y el Palmaria que te crees que es? batea de TAM con 155 mm arriba ... y no te hagas el fanfa !! :-))))
El “Palmira” es la misma m.... despues de tomarse un viagra, un ratito despues se convierte en fitito :-)
Aug 06th, 2011 - 12:33 am - Link - Report abuse 0TAM, tiene nuevas versiones actualizadas?
Aug 07th, 2011 - 03:55 pm - Link - Report abuse 0Commenting for this story is now closed.
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