On Wednesday, the House passed a bill that would suspend the U.S. debt ceiling. However, experts say Republicans will reject the legislation in the Senate because they won’t support a debt limit increase or suspension. CEO of JPMorgan Chase said the bank has already started preparing for a potential default.
House passes debt ceiling suspension that is doomed in the Senate
The House on Wednesday passed a bill to suspend the U.S. debt ceiling as the country barrels toward a first-ever default with no clear solution in sight.
Republicans will sink the plan in the Senate. The GOP has opposed any effort to raise the borrowing limit and appears intent on making Democrats address it as part of their sprawling investment in social programs and climate policy.
Treasury Secretary Janet Yellen has told lawmakers the U.S. will run out of ways to pay its bills around Oct. 18. If Congress fails to suspend or raise the debt limit before the deadline, lawmakers risk a default that could cost millions of jobs, jeopardize government benefits and crash the financial markets.
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CNN Business/Matt Egan
Jamie Dimon says JPMorgan has begun to prepare for potential US default
JPMorgan Chase CEO Jamie Dimon says America’s largest bank is once again preparing for a potential US default even though he expects Congress to avoid that “potentially catastrophic” event by lifting the debt ceiling.
In an interview with Reuters on Tuesday, Dimon said JPMorgan has begun scenario-planning for how a possible default would affect financial markets, capital ratios, client contracts, and America’s credit ratings. That’s something Dimon has indicated the bank did during previous close calls with the debt ceiling.
“Every single time this comes up, it gets fixed, but we should never even get this close,” Dimon told Reuters. “I just think this whole thing is mistaken and one day we should just have a bipartisan bill and get rid of the debt ceiling. It’s all politics.”
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Kitco News/Rajan Dhall
What next for silver?
As reported earlier this week silver broke a very important level on the weekly chart (click here). Now looking to the left on the higher timeframes could be an important exercise.
There is a key feature on the monthly chart below. The March 2008 high at $21.31/oz is about to be tested and it was also important in July 2016. Now, it seems like these levels are from a long time ago but they were used to good effect.
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