Here's the cause of the dollar weakness

Has anyone found or known anyone who got out of debt by collecting more debt? What is happening in Washington D.C. is probably criminal if it were applied to the civilian/corporate laws. It is incompetent to say the very least.


Remember the last debt cieling hike in the US that led to the downgrade of out AAa status? Also remember the SUPER COMMITTEE? Yeah, well who would have thought that after all that we'd be getting ready to hike the debt ceiling or in this election year, perhaps a default would help ouster Obama? It's hard to say what will happen when politics heat up in an election year and anything and everything becomes a political issue, this time we are singing the second verse and it's the same as the first.

The US Treasury, who just got 4 weeks of free money, has announced the following:

• U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLION
• U.S. DEBT TO BE $100 BLN WITHIN LIMIT ON DEC. 30, TREASURY SAYS
• STEPS FOR INCREASING DEBT LIMIT UNDER 2011 BUDGET CONTROL ACT
• OBAMA ON DEC. 30 LIKELY TO ASK CONGRESS TO RAISE DEBT LIMIT

So the U.S. is right around 100% debt to GDP, but soon to surpass that. US GDP was revised down to $15.176 trillion. Add $1.2 trillion more in debt and the debt will be at 16.394 trillion leaving us around 108% debt to GDP.

Cue Moody's