Congressional Republican Leader John Boehner, trying to launch its own deficit reduction program, as Obama less counter-proposal of the deficit plan. But the Republican bigwigs, the protagonist of the negotiations with the White House, could not in the party to coordinate the requirements of various forces, voting was canceled at the last minute. The Boehner Plan B Zhuiya the market worried about his party's leadership and mediation capacity, worried that Congress failed to pass the bill before the end of the year to avoid expenditure cuts of $ 600 billion tax increase takes effect automatically, worried that the U.S. economy plunged into a cliff. U.S. stocks fell, lost earlier in the week proceeds, risk assets for callback. The global stock market weakness, paradise government bonds by holding oil prices rose, gold dropped.
Boehner ingenuity, come up with a Plan B, the last clever anti cleverness, not only so that any of the the Republican Congressman leaders want to cast a shadow over early next year, but also the market suddenly realized that Boehner may not get the full support of the Party Members , the White House and congressional negotiations away from a farther distance reached consensus than imagined. My opinion, what happened last week will undoubtedly without vigilance market bang bar to drink, and the Congress can not be reached before the end of a consistent risk has increased, but in the end the White House and Capitol Hill agreed to launch a temporary mitigation measures to postpone Zhuiya has not changed much. In fact, the two parties on the tax increase, the position has been quite close to the White House program to 1.2 trillion, while Republicans insisted that no more than 1 trillion; the White House has been to raise taxes population increased to 40 million in annual revenue by $ 250,000. The Laya and Plan B, the White House immediately evolutions, called on Congress to downsize, will raise taxes in the highest income of 2% of the population, and unemployment benefits are limited to two million people in the most difficult. I believe This is a compromise can be reached, the election is over and the party struggles will, but not life and death, just the process ism, people to see.
Plans Laya, the White House immediately evolutions, called on Congress to downsize, will raise taxes in the highest income of 2% of the population, and unemployment benefits are limited to two million people in the most difficult. I believe This is a compromise can be reached, the election is over and the party struggles will, but not life and death, just the process ism, people to see. Japanese government bonds JGB write a new record last week, the foreign ownership of Japanese government debt reached 86 trillion yen (about one trillion U.S. dollars, equivalent to 9% of the total debt). This ratio is lower than the U.S. foreign investment accounted for 45% of level is undoubtedly a lot, but it is unprecedented in the history of Japan, and a large number of the Bank of Japan to buy JGB actually make the proportion is artificially reduced. Japan's debt-GDP ratio in the world all normal economy is the highest, is no reason why the outbreak of the debt crisis because JGB rests in the hands of the Japanese domestic financial institutions, these institutions are passive holding bonds, do not have a strong sense of risk, nor were capital flight signs, so speculators not afford to turn to. But the scale of Japan's debt is increasing deterioration in the profitability of the enterprises in overseas trade balance is more a structural deficit, an aging population began to decrease the savings rate to maintain the expenses. Japan's debt issuance will increasingly rely on overseas funds, and ultimately makes the JGB market is more affected by the influence and impact of overseas thought. Under such a background, the new Prime Minister Shinzo Abe of unconventional fiscal expansion plans and stare inflation monetary policy is more likely to trigger point JGB crisis. Christmas Japanese government bonds this week JGB last week to write a new record, the foreign ownership of Japanese government debt reached 86 trillion yen (about one trillion U.S. dollars, equivalent to 9% of the total debt). This ratio is lower than the U.S. foreign investment accounted for 45% of level is undoubtedly a lot, but it is unprecedented in the history of Japan, and a large number of the Bank of Japan to buy JGB actually make the proportion is artificially reduced. Japan's debt-GDP ratio in the world all normal economy is the highest, is no reason why the outbreak of the debt crisis because JGB rests in the hands of the Japanese domestic financial institutions, these institutions are passive holding bonds, do not have a strong sense of risk, nor were capital flight signs, so speculators not afford to turn to. But the scale of Japan's debt is increasing deterioration in the profitability of the enterprises in overseas trade balance is more a structural deficit, an aging population began to decrease the savings rate to maintain the expenses. Japan's debt issuance will increasingly rely on overseas funds, and ultimately makes the JGB market is more affected by the influence and impact of overseas thought. Under such a background, the new Prime Minister Shinzo Abe of unconventional fiscal expansion plans and stare inflation monetary policy is more likely to trigger point JGB crisis.
Into the Christmas holidays this week, trading volume and message flow estimate will be significantly reduced. The next two weeks, the biggest focus of course is the U.S. fiscal cliff, see American politicians will not the national interest is placed above the party struggles. The end of the non-agricultural employment in the United States, is expected to increase by +165 K, the unemployment rate remained at 7.7%. ISM should be slightly better than last month by Hurricane impact of digital. Minutes of the Fed, the low interest rates maintained until at least 2015, "remarks already clear, Aspect forecasts for growth and inflation. In Europe, PMI estimation improved. The Italian situation is still uncertain, Monty whether the election is still suspense. In Asia, China's PMI may be further improved.
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