Investor fears about the gridlock in Washington over raising the US debt ceiling mounted further on Monday as political leaders jousted over competing solutions to avert a possible debt default in August.
The lack of public signs of progress in resolving the debt ceiling impasse between the Republican and Democratic parties cast a shadow over global markets with frustrated investors withdrawing further into haven assets.
The dollar fell to an all-time low against Swiss franc while gold touched a record high. Long-dated US Treasury bonds weakened while global stocks remained under pressure.
The International Monetary Fund reiterated the US must raise the debt ceiling rapidly, as a loss of confidence in US sovereign debt would have severe effects for the rest of the world.
Republican leaders in the House of Representatives and Democratic leaders in the Senate were working on competing proposals to lift the $14,300bn debt ceiling and rein in future US deficits. It was unclear whether the two could be reconciled in time to give Congress sufficient time to vote on the legislation before the August 2 deadline when the US could default on its debt and other obligations.
Republicans want to raise the debt limit in stages, initially only through early 2012, followed by a more comprehensive reform of long-term spending. Democrats and the White House have been adamantly opposed to a short-term debt limit increase, and want a resolution that would extend beyond next year’s presidential election, scheduled for November.
House Speaker John Boehner’s two-step debt-limit plan would raise the US borrowing limit by up to $1,000bn and later by $1,600bn, according to Republican aides cited by Bloomberg. The plan would require $1,200bn in spending cuts in the first phase and $1,800bn in the second step, the aides said.
Harry Reid, the Democratic majority leader, is promoting his own proposal to raise the debt limit in one instalment while cutting $2,700bn from projected budget deficits over the next decade.
In volatile overnight trading, the yield on 30-year bonds rose 8 basis points. US shares opened weaker with the S&P 500 initially falling nearly 1 per cent. Losses were trimmed to 0.10 per cent by midday in New York.
标签：美国 债务 僵局
2011-07-27 10:18 编辑：essaywriter