Debt clock ticking, but default damage already unfolding

The Extinction Protocol

October 15, 2013WASHINGTONThe warnings from Wall Street are dire: A stomach-turning dive in the stock market. World economies in peril. Another recession in the United States. A replay of the 2008 financial crisis — or worse. And the date investors are worried about is fast approaching. It’s Thursday, when the United States bumps up against the $16.7 trillion limit set by Congress for the amount of money the government can borrow. Why the alarm? If Congress can’t make a deal and raise the limit, the value of United States government debt — the paper considered the safest investment on earth, the grease for the machinery of the world financial system — will be called into question. As the clock clicks toward Thursday’s deadline, signs of damage are already emerging. The Chinese, who hold more U.S. debt than any other country, have wondered aloud whether it’s time…

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