The financial markets are being frightened by the shutdown and possible standoff again by politicians over the debt limit approval. At the IMF meeting IMF chief Christine Lagarde warned of far reaching consequences of this crisis if not resolved soon. The Chinese govt wants this crisis to be settled sooner than later. And the Indian Reserve Bank Governor says that their country is very much concerned especially that the value of US Securities as collateral is being discounted. At HK, the value of collateral backed by US Treasuries are being doubled
As a result US US Treasuries tumble amidst concern of US default by October 31, 2013 The bills that will mature by end of October and early November tumbled by most. If the new debt ceiling is not passed, the US Fed will run out of cash as early as October 22, 2013.
And it is possible that by October 31, only $6 billion, the amount of interest to be paid at the end of the month, could just be $ 6 billion? It could be true, if US would run out of money.
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