The U.S. Debt Limit Negotiations

The U.S. Debt Limit Negotiations This week the markets seemed worried by the resumption of the negotiations on the debt limit AS or debt ceiling are due on October 1, 2013. As is known, the Republican party stay afloat to trim the budget for the u.s. Government's budget is passed.

However, President Obama doesn't like the proposal put forward by the Republicans because of the type of funding obtained, is temporary. The market seemed to dislike an overly drawn-out negotiation process and thus increasing uncertainty in the dramatized medical footage of the market. Although the largest probability, is passed.

If the debt limit hike just passed, then in December seems to be coming there should be negotiations between the Government, the Congress and the u.s. Senate. If the u.s. does not raise the debt limit, the Government certainly will experience difficulties in getting funding to finance his Government.

Obama and Republicans will reach a profitable agreement between the two sides. The thing is, the negotiation process was going to be quite a lot and give rise to market risk in the us.

The Governor of The Kansas City Fed's Esther George criticized sharply the decision of his colleagues because it did not cut its monetary stimulus. As a result, it creates market confusion and risking the credibility of the Central Bank of the U.S., given the market believes The Fed will begin reducing the purchase of obligasinya in September.

Earlier, investors were puzzled by the decision of the Central Bank (The Fed) has defended the monetary stimulus. The decision is viewed in contrast to expectations of a number of other Fed officials.