Alroy Commentary - Senate pass debt deal but U.S. disrepute
The U.S. Senate approved a deal to reopen the government and raise nation’s debt ceiling. The measure is expected to succeed. However, the measure just offers only a temporary function and does not resolve the fundamental problem of political dysfunction. The deal would finance the government to reopen until 15 of January and the borrowing limit would be raised until 7 of February. Although a new financial crisis is avoided temporarily, political dysfunction chips away at U.S. prestige.
In past two weeks, global Investors have lost their faith in America, banks and investment institutes have dumped billions of dollars in U.S. government debt. As the largest foreign owner of U.S. government debt, Chinese government signaled its frustration by publishing an article which suggests building a “de-Americanized” global economy and creating a new currency to replace dollar. However, it is not easy to turn away from the U.S., since there are not any alternatives.
With the reopen of U.S government, markets will return to normal soon. Investors focus will shift to the track of U.S recovery.
Copyright ©2015. Alroy Financial Services Limited. All rights reserved. Member of Hong Kong Professional Insurance Brokers Association. Membership No. M-437. |
Follow Us: Show: Full Site | Mobile site |
|
The information of this page is for reference only; it does not constitute any selling purpose, solicitation of buying and recommendation for you to participate and complete any transaction. |