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Friday, July 22, 2011

Wall Street, companies brace for the worst: a U.S. default

All these shenanigans going on in Washington and Europe are a prelude to the big event, a collapse of the US dollar. The big wigs of world banking and politics know very well that the days of the dollar are numbered; not because the powers that be are unable to fix the economic crisis but because they don't want to fix the crisis. On the contrary they are deliberately sabotaging the current economic system in order to bring in a new global monetary union that is necessary before a global government can be instituted.If the brightest minds in the world with trillions at their disposal cannot fix the world's economic problems, then the real reason is that they do not want to fix the problem, there is no other explanation. So prepare for doomsday to begin; the beginning of the end will be the day the dollar dies, and reports such as the ones below confirm that the players are indeed rolling the dice to get this end game started. 

(Reuters) - American businesses, from Wall Street banks to major industrial corporations, are preparing contingency plans for a pair of once-unthinkable events: the United States defaulting on its debt and the loss of the nation's top AAA credit rating.
While most bankers, investors and executives still cannot imagine that politicians in Washington could be reckless enough to let the government run out of money to pay its bills on August 2, they can't guarantee that the game of chicken that has been played in recent weeks won't go awfully wrong.
Lawmakers and President Barack Obama need to agree to raise the current $14.3 trillion legal borrowing limit by that date to avert a default but the decision is being held hostage to arguments between Republicans and Democrats about how to cut the U.S. budget deficit.

And on Friday evening, the prospects of an agreement suddenly dimmed when top U.S. Republican, House of Representatives Speaker John Boehner, broke off talks with Obama, saying they had become futile because the U.S. President was demanding an increase in taxes. Read Article

Fed, Treasury officials met to discuss US default

Officials from the Federal Reserve and U.S. Treasury met Friday to discuss what would happen if the nation defaults on its debt, a scenario that could occur next month if Congress doesn't raise the nation's borrowing limit.
The Treasury says Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke met, along with Federal Reserve Bank of New York President William Dudley, to discuss "the implications for the U.S. economy if Congress fails to act."

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