Record Deficit...
09/09/08 17:42
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The Congressional Budget Office released figures today, showing that the Federal Government will be running a record deficit of $409 Billion dollars, at the close of the budget year on September 30. The CBO is also predicting that debt from this year will carry over into next year, when the deficit is expected to rise to $438 Billion and possibly even higher with the government bailout of Fannie Mae and Freddie Mac. Who is going to bail out the Federal Government when they are no longer able to meet their obligations? What happens when the creditors who have been propping up the US, by purchasing US Treasury bonds, demand payment? Who is going to make the payment on all of that debt? Read the story here.
Oil continued to slide today, as OPEC met and decided to keep production levels where they are. It was initially feared that the Cartel would cut production to maintain market prices, but both Saudi Arabia who carries heavy influence within OPEC, and Venezuela agreed on leaving production quotas untouched. The Saudi Oil Minister called the market “well balanced”. Brent crude actually dipped below the $100 mark today. Market analysts predict that oil will fall below the $100 mark, which comes as a welcome relief to a faltering global economy. Read the story here.
Russia stated that troops would remain in the breakaway regions of South Ossetia and Abkhazia for a “long time” to prevent further military action from Georgia. 7,600 troops have been committed to the effort. Russian Foreign Minister Sergey Lavrov also warned that a lasting peace is only possible if Georgia is not allowed to rearm. Read the story here.
The Russian, state run company that is building Iran’s first nuclear plant in Bushehr, stated that the reactor’s launch has entered the final phase. Iran is paying a price tag of over $1 Billion dollars for the plant. The company stated that by the end of the year steps will be taken that will make the launch irreversible. Read the story here.
Until next time...
The Congressional Budget Office released figures today, showing that the Federal Government will be running a record deficit of $409 Billion dollars, at the close of the budget year on September 30. The CBO is also predicting that debt from this year will carry over into next year, when the deficit is expected to rise to $438 Billion and possibly even higher with the government bailout of Fannie Mae and Freddie Mac. Who is going to bail out the Federal Government when they are no longer able to meet their obligations? What happens when the creditors who have been propping up the US, by purchasing US Treasury bonds, demand payment? Who is going to make the payment on all of that debt? Read the story here.
Oil continued to slide today, as OPEC met and decided to keep production levels where they are. It was initially feared that the Cartel would cut production to maintain market prices, but both Saudi Arabia who carries heavy influence within OPEC, and Venezuela agreed on leaving production quotas untouched. The Saudi Oil Minister called the market “well balanced”. Brent crude actually dipped below the $100 mark today. Market analysts predict that oil will fall below the $100 mark, which comes as a welcome relief to a faltering global economy. Read the story here.
Russia stated that troops would remain in the breakaway regions of South Ossetia and Abkhazia for a “long time” to prevent further military action from Georgia. 7,600 troops have been committed to the effort. Russian Foreign Minister Sergey Lavrov also warned that a lasting peace is only possible if Georgia is not allowed to rearm. Read the story here.
The Russian, state run company that is building Iran’s first nuclear plant in Bushehr, stated that the reactor’s launch has entered the final phase. Iran is paying a price tag of over $1 Billion dollars for the plant. The company stated that by the end of the year steps will be taken that will make the launch irreversible. Read the story here.
Until next time...