Tentative Debt Deal Might Happen; $2.4 Trillion Debt Ceiling Increase Supposedly Tied to $2.4 Trillion in Cuts
July 31st, 2011Deal Almost Complete; No Vote Today
Forex is underway. So far, it mostly just looks like the usual noise. NZD/USD broke higher again, however, and hit a new record high of .8842 intraday.
Gold is selling off a bit, down 1% right now.
Major Asian equity markets are all green; Nikkei up 1.65%.
I’ll be monitoring…
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Via: AP
No votes were expected in either house of Congress until Monday at the earliest, to give rank and file lawmakers to review the package.
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Update: Has to Happen Before Asia Opens
Via: Reuters:
British and Japanese officials warned Sunday of disastrous consequences for the global economy if last-minute talks among lawmakers in Washington failed to agree on raising the U.S. borrowing limit and averting a debt default.
Governments across the world fear that because of the key role of the U.S. dollar in global banking and trading systems, there could be severe instability when Asian financial markets reopen Monday if a U.S. debt deal is not in sight by then.
In Washington, Senate Minority Leader Mitch McConnell, the top Senate Republican who is playing a key role in the debt talks, said “we’re very close” to a $3 trillion deal that would raise the debt ceiling while cutting the U.S. budget deficit.
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LOL. I’m not even going to say it.
Anyway, it’s not done yet, but ABC is going with it.
I’m thinking that they’re going to try to get it done before Asia gets under way. There will have to be a vote sometime today EST.
Via: ABC News:
ABC News’ Jonathan Karl reports:
There is caution on Capitol Hill about a tentative deal being reached.
As the mantra here goes, “nothing is agreed to until everything is agreed to.”
Congressional leaders have begun briefing their membership on this framework and are gauging reaction. The key question, of course, is whether there is enough support to pass it.
And one more detail on this emerging deal:
As reported earlier, President Obama would get a debt ceiling increase of up to $2.4 trillion (the final amount tied to the amount of the cuts agreed to).
