A former adviser to the Bush administration told CNBC that every American will have to work 10 years longer than they thought to pay off the mounting U.S. debt.
In view of Malmgren, any U.S. economic recovery will be based primarily on manufacturing, agriculture and innovation, but the banks need to watch out if they continue to refuse to lend to American businesses and consumers.
With tensions high over the debt crisis in Europe, Malmgren expected, several rounds of the bonds haircut that will eventually see the devaluation of the euro zone countries.
read also: Obama To Walk Out Of Debt Limit Meeting, Fed To Provide Stimulus
Obama To Walk Out Of Debt Limit Meeting
President Barack Obama rushed out of the meeting regarding the upper limit of U.S. debt.
This was disclosed by leader of the party majority in the Senate Eric Cantor to reporters, according to some press reports, as quoted by MarketWatch.
While Democrats, Steny Hoyer, said that he would try to persuade his party to vote against the Republican balanced budget amendment.
Limit on the debt of U.S. $ 14.3 trillion due to be achieved on August 2, which refers to the risk of default on U.S. obligations.
read also: Fed To Provide Stimulus, The Bank of Korea Hold Interest Rates at 3.25%
This was disclosed by leader of the party majority in the Senate Eric Cantor to reporters, according to some press reports, as quoted by MarketWatch.
While Democrats, Steny Hoyer, said that he would try to persuade his party to vote against the Republican balanced budget amendment.
Limit on the debt of U.S. $ 14.3 trillion due to be achieved on August 2, which refers to the risk of default on U.S. obligations.
read also: Fed To Provide Stimulus, The Bank of Korea Hold Interest Rates at 3.25%
The Bank of Korea Hold Interest Rates at 3.25%
Bank of Korea said that it would maintain the policy interest rate at 3.25% level, according to expectations.
The central bank began raising its benchmark interest rate 2.0% from a record low in July 2010.
Separate poll of economists by Reuters and Dow Jones Newswires had forecast the bank will continue to survive, although the majority polled by Reuters said that Korea will raise interest rates 2.25% points before 2012.
Dow Jones Newswires said, 9 out of 12 surveyed economists forecast a rise next month.
read also: Fed To Provide Stimulus, Fitch To Downgrade Greece's Default Ratings
The central bank began raising its benchmark interest rate 2.0% from a record low in July 2010.
Separate poll of economists by Reuters and Dow Jones Newswires had forecast the bank will continue to survive, although the majority polled by Reuters said that Korea will raise interest rates 2.25% points before 2012.
Dow Jones Newswires said, 9 out of 12 surveyed economists forecast a rise next month.
read also: Fed To Provide Stimulus, Fitch To Downgrade Greece's Default Ratings
Fitch To Downgrade Greece's Default Ratings
Fitch Ratings downgraded the foreign currency issuer default, and long-term local Greek farther, to CCC from B + previously.
Short-term foreign currency of Greece was also downgraded to C from B. Fitch said the downgrade reflects the absence of the European Union's new program-the IMF which are fully funded and credible to the Greeks.
Other causes are the increasing uncertainty about the role of private creditors in future funding, as well as the weakening macroeconomic outlook for Greece.
read also: Fed To Provide Stimulus, European Crisis Making the Wall Street Worse Off
Short-term foreign currency of Greece was also downgraded to C from B. Fitch said the downgrade reflects the absence of the European Union's new program-the IMF which are fully funded and credible to the Greeks.
Other causes are the increasing uncertainty about the role of private creditors in future funding, as well as the weakening macroeconomic outlook for Greece.
read also: Fed To Provide Stimulus, European Crisis Making the Wall Street Worse Off
Fed To Provide Stimulus
Fed governor Ben Bernanke said that the U.S. central bank was prepared to provide more stimulus if needed to boost the state economy.
The two annual reports to Congress, Bernanke explained the three options will be considered by the central bank. One possibility is to conduct the third quantitative easing since 2009.
Fed governor also declared an aid to raise stock prices. But he also emphasized the vulnerability of the economy during the last two years after economists declared the recession was over.
The unemployment rate rose for three months, respectively. And the sentiment from the outside, such as Greek and European debt crisis that threatens the global economic downturn. Bernanke also warned the government's decision regarding the debt limit, on August 2.
read also: Dollar and Stocks Fall, U.S. Crude Oil To Rise, Young People Are Lazy, U.S Economy Fails
The two annual reports to Congress, Bernanke explained the three options will be considered by the central bank. One possibility is to conduct the third quantitative easing since 2009.
Fed governor also declared an aid to raise stock prices. But he also emphasized the vulnerability of the economy during the last two years after economists declared the recession was over.
The unemployment rate rose for three months, respectively. And the sentiment from the outside, such as Greek and European debt crisis that threatens the global economic downturn. Bernanke also warned the government's decision regarding the debt limit, on August 2.
read also: Dollar and Stocks Fall, U.S. Crude Oil To Rise, Young People Are Lazy, U.S Economy Fails
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