geithner: default 'off the table,' debt deal..

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    Default 'Off the Table,' Debt Deal Will Be Struck: Geithner
    Published: Monday, 18 Jul 2011 | 8:52 AM ET

    Treasury Secretary Tim Geithner told CNBC Monday that he is certain that congressional leaders will strike a deal to raise the federal debt ceiling prior to the Aug. 2 deadline to avoid default.

    ?Each side has said definitively that default is not an option,? he said, ?They?re not going to play around with this.?

    ?If the United States of America were to default it would be catastrophic for the American economy, for the American financial system, for the average American people, it would be a substantial unfair tax on all Americans and it would bring the world economy ? to the edge of recession again,? he said. ?There?s no alternative for Congress raising the debt limit and that?s why you?re seeing Republicans as well recognize that reality and take default off the table.?

    He added that while it?s encouraging that congressional leaders are moving toward a debt agreement before the deadline, ?of course it?s not enough.?

    Geithner said the Obama administration and congressional leaders need to work toward addressing long-term deficits, while at the same time ensuring that Medicare and Social Security continue to be funded.

    ?We?re still working very hard and the president as he said last week that he wants us to work toward the biggest, the largest budget agreement we can,? he said.

    When asked about recent reports that he has been contemplating stepping down, Geithner said he intends to stick around ?for the foreseeable future.? (end)

    Obama: 'We're Making Progress' on Debt Compromise
    Published: Monday, 18 Jul 2011 | 1:47 PM ET
    By: Reuters with

    President Obama said on Monday he was making progress in talks with Republican congressional leaders on a debt and deficit deal.

    "We're making progress," Obama told reporters when asked about the negotiations after announcing his nomination of former Ohio Attorney General Richard Cordray to head a new Consumer Financial Protection Bureau.

    With five days to go before Obama's deadline for a debt ceiling deal and no agreement in sight, Republicans and Democrats were still crafting a fallback plan to avert a U.S. default.

    Both parties agree on the need to raise the U.S. debt ceiling, which caps how much the United States can borrow, but are deeply divided along ideological lines over how to do it.

    Treasury Secretary Timothy Geithner, however, remained optimistic that a deal was possible.

    "Despite what you hear, people are moving closer together,'' Geithner, who met with top House Republicans on Friday, told CNBC.

    "You have seen the leadership of the Republican Party...take default off the table. That's encouraging.''

    But the stalemate in Washington, along with debt problems in Europe, is unnerving financial markets worldwide amid fears that they could spiral into a global crisis.

    World stocks dipped and gold prices hit record highs above $1,600 an ounce as nervous investors sought a safe haven.

    "There's a perfect storm happening on a global macroeconomic basis with no debt deal here and the ongoing issues in Europe, and the market is looking at all these things and is fairly anxious,'' said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, New York.

    The top Republican in the Senate, Mitch McConnell, has submitted a plan that would essentially give Obama the power to raise the debt limit and take the political heat off Republicans.

    Senate leader Harry Reid hopes to begin debate on a modified version in the Democratic-led Senate this week. He said the Senate will stay in session until some kind of deal is reached.

    McConnell's complicated plan to increase the debt limit in three stages has moved to the forefront as efforts to reach a comprehensive deficit-reduction deal have hit a wall.

    Democrats and Republicans ? with an eye on 2012 elections ?are digging deeper into entrenched positions on taxes and entitlement programs such as Social Security and the Medicare healthcare program for the elderly.

    Look like US and European countries are doing chicken game or ping pong tennis game with world market.

    In the midlle Aussie market is nowhere to go and struggling to sustain its current level, haha.

    It is miraculous to see green shoot among some burgeoning Mongolian coal minnows. This is current money making trend not to be missed, IMO.

    After deal struck, it is likely very short term some relief rally, but when and how much......


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