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International Forecaster

THE INTERNATIONAL FORECASTER
Saturday, October 5, 2013
10/05/13 #2
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WORLD MARKETS

Globalism Rising
By James Corbett
To long-term subscribers of The International Forecaster, the basic concept of the drive toward global government should be all too familiar by now. The Powers That Shouldn't Be create a problem, hype up and exacerbate that problem, and then offer their pre-ordained solution to that problem: global government. We see this economically through the rise of regional trading and currency blocks. We see it geopolitically in the reaction against the increasing insanity of American military unilateralism. We see it socially in the push toward homogenization of culture and values. In every case, the answer that has been prepared in advance is the same: global government. Only a unified global government can provide financial stability in this post-Lehman era. Only a global government can rein in the military adventurism of the NATO powers. Only a global government can provide an international rule of law.
This “solution” is no solution at all, of course. It is a carefully crafted lie that has been implanted in our culture and infects us almost from the moment of birth through a steady stream of propaganda ranging from the innocuous (model United Nations in our schools) to the overt (the creation of chairs, scholarships and entire fields of study devoted to furthering global governance). The trick is that the globalization of the elites wraps itself up in nice sounding platitudes and lofty noble intentions that co-opt the common sense notions of global trade and cooperation amongst neighbors that most aspire to. Rather than the breaking down of arbitrary lines on a map, this elite-driven globalization seeks to draw one big line around the entire earth and to claim everything within that line as the elite's jurisdiction.
We've seen a number of cases in point illustrating this idea in recent months. Perhaps the most obvious of these is the way in which the United Nations has been seemingly re-legitimized as the “international keeper of the peace” in the Syrian situation. Exactly as feared, the UN has become the linchpin of the diplomatic wrangling over the soul of the Syria to the detriment of Syrian sovereignty. From the chemical weapons inspection team that Assad was pressured to let into the country in the first place (and after the debacle in Iraq, what leader would see the presence of such a team as anything but a prelude to invasion?) to the deployment of that team to deliver an “authoritative account” of the August 21st attack in Damascus (whose scope of investigation didn't actually include the determination of blame for the attack) to the use of the Security Council chambers as a debating ground for resolutions seeking authority to invade (or prevent the invasion of the country), it is the UN itself that consistently comes off as the winner, the noble, virtuous, neutral, cool-headed arbitrator, the wise sage that can rule on the best course of action for any state.
Now the UN is seeking to increase that status even further. Last Wednesday the UN Security Council rebuked Syria for preventing the free flow of international aid across its borders. In an article devoted to the subject, NBC News spent 17 paragraphs painting Assad's government as murderous and barbarous for hampering “humanitarian efforts” before admitting in the 18th paragraph that certain supposed “aid” groups were suspected of using humanitarian cover to covertly ship arms in to supply Syria's terrorist insurgency, exactly as has been happening throughout the conflict and in countless similar conflicts in the past.
This is the way of UN propaganda. It constantly wraps itself in a cloak of “humanitarianism” and “responsibility to protect” and “global stability” that is only much later revealed to be a ruse designed to allow the UN to accrue more powers to act within the borders of supposedly sovereign states. Much like how the UN's “Universal Declaration of Human Rights” spends 28 Articles magnanimously bestowing a series of wonderful-sounding rights on the peoples of the world before blithely admitting in the 29th that those rights can be freely granted or evoked by the UN at any time it sees fit.
But at least with the United Nations people know what they are getting. In the economic sphere, so much of the push toward globalization is taking place in secret and behind closed doors that most people don't even have a clue that it is taking place. Case in point: the TPP. For those not in the know (i.e. just about everyone), the TPP is the “Trans-Pacific Partnership,” a 12-member free trade bloc of (you guessed it) Pacific nations, including the world first and third biggest economies (the US and Japan) and a number of smaller emerging economies, including Indonesia, Malaysia, Brunei and Peru. Although there has been some coverage in the alternative press and widespread consternation in some quarters (online liberties activists, Japanese farmers, anti-shale gas mining campaigners in New Zealand, proponents of generic medicines in developing economies, etc.), most people still have never even heard of this treaty, which some say will be the final nail in the coffin of US sovereignty (not to mention that of the other signatories). This has been part of a deliberate strategy of holding text of the treaty under lock and key and using unprecedented security measures to keep the public from learning what the treaty actually contains, although ominous hints about “NAFTA on steroids” have been routinely floated by those with knowledge of the deal.
Now the TPP negotiations are in the home stretch, with a summit taking place in Indonesia next Tuesday that is expected to arrive at a basic agreement ahead of a full deal within the year. The only tiny sliver of hope comes from the fact that Obama—who was expected to helm the upcoming summit as they work toward agreement on a number of contentious topics—will not be able to attend because of the government “shutdown” farce currently taking place in Washington. He has asked Secretary of State Kerry to attend in his place instead. This may hamper negotiations somewhat, but progress toward the finalization of the treaty seems inevitable at this point. In this case, the TPP (like the WTO, the IMF, the BIS and other globalist financial institutions) is set to create a whole infrastructure governing international trade without the knowledge, participation or consent of the vast swathes of the population that it will directly impact.
The worst part about this drive toward globalism is that even institutions created with the best of intentions can still be used to serve an overall agenda of global enslavement. Much has been made, for example, of the recent announcement that Brazil is spearheading a type of “alternative internet” in protest of the recent revelations of ubiquitous NSA surveillance online. The plan calls for an “Optical Ring” of independently-operated optical cable to join 12 South American nations directly with Europe and Africa, completely bypassing the existing internet infrastructure which runs through the United States. The project is nothing if not ambitious, involving the laying of some 10,000 kilometers of cable, with work expected to start next year.
But is this being done for altruistic reasons or simply so that Brazil and the governments of the other countries involved can replace the NSA as the Big Brother of their own netizens? As Glenn Greenwald himself warns, just because this group of governments is setting up an alternative internet to bypass the United States, that doesn't mean that they won't ultimately resort to the NSA's tricks: “There is a temptation on the part of every power faction to try and exploit the Internet to erode privacy and to increase their own surveillance. And I think that a lot of vigilance is going to have to be devoted to these alternatives as well and make sure that they don't end up being as bad just in different ways.”
Whether in public at the UN, in private at the TPP Summit, or through the back door via government-supplied anti-spying “solutions,” we consistently arrive back at the same spot: the same groups of thugs who consider themselves to be the representatives of the people are hell-bent on increasing their own power, riches, and control at the expense of the public that they so cynically manipulate. This is the true face of the global government that is being set up behind the scenes. It is a government by and for the ruling cliques, for the preservation of their own power and fortune at the expense of the many.
So what is the real solution to this conundrum? The answer self-evidently can't come from the self-same politicians and corrupt businessmen who are busy setting up their elite-run global government behind the scenes. Instead, it must originate in the people. It is up to the people to steer the shape of this globally-connected era, by either signing on to the systems of global governmental control or creating the alternative infrastructures that will be the only hope of escaping this encroaching tyranny. The truly incredible technology of this era, from mesh networking and other internet-alternatives to 3D Printing technology to the open source revolution, remain as a potential tool for the people to use in an era of global peace and cooperation. Conversely, the technologies of control, from NSA spying to the universal ID biometric grid to the drive toward the cashless society, can be used to create a globally-run, globally-enforced surveillance control grid. We have a narrow window of opportunity to act to stop the globalists before they get their way. It remains to be seen whether we will take advantage of that window or merely acquiesce as the UN, the TPP, the WTO, the NSA and other such institutions continue to chip away at our freedoms and sovereignty.


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Grand Illusions
By Bob Rinear
I’m sure a lot of you have seen the movie the “matrix” wherein virtually everything you see or hear is “made up”, or in other words a virtual reality. Well folks, we live in that very matrix.  Everything the Government, or its blood brother – Wall Street,  tells you, is designed to elicit a particular response by you.  Whether that response is loyalty, obedience, directives of action, etc, just know…there’s a reason they’re telling you what you hear. 
Over the many years, we’ve explored and explained many of the most common lies that are put out as fact, and dissected the reality of the reports. For instance the unemployment report, which they might state is “7.5%” but that just happens to overlook the millions that gave up looking for work, or the underemployed nuclear scientist working part time at Fat Chucks burger joint. In other words, the headline is simply a lie, designed to make you believe the economy is doing well, and the only reason YOU don’t have a job is because, well, you’re a loser. The economy is fine. 
Man made global warming is one of their more ambitious lines of BS.  In this fairy tale, they’ve gone right to the socialist manifesto for help instituting that work of fiction, by indoctrinating the children. The Socialists and Communists learned in the late 30’s that if you really want to push an agenda, you have to start with little kids in school. Brain wash them when they’re young and pliable and you can make them into soldiers for any flights of fantasy you’d like.  So they did just that, putting out directives to the intelligencia that all school programs would become “green” and teaching of the evils of using fossil based fuels was the cause for murdering our planet.  Most took it exponentially further and insisted that the whole idea of capitalism was evil, and destructive to the planet and should be stopped in its tracks. 
The thing I find distressing, is that once the dumbed down people are confronted with the rock solid FACTS of a situation, they will continue their ruthless following of the lie instead. I’m sure those who study psychology can tell me why that is, but I’m just a simple old clam digger from the Jersey shore. I don’t understand it other than to think that “they get it but don’t want to admit it so they lie even louder”.  You will rarely find the outspoken robot of any movement or agenda saying “holy crap, I didn’t know this was patently false, I’m sorry.. I’ve been wrong”.  In fact, rarely is a pretty generous term. You’ll NEVER hear that. 
So the timing was really almost too coincidental this week when I was once again listening to some woman on TV who sounded like she gargles with 40 weight gear oil, telling me about just how great the housing recovery is and how pent up demand is pushing prices and values back up in a spectacular recovery.  Why was it coincidental? Because this week something happened just a few doors from my mom’s house that I found interesting. 
For a couple weeks we’d seen work crews coming and going at a home just down the street from my mom. The last we knew, it was owned by a single woman, a real estate agent of some form. But just the other day, the workers were leaving and a sign went up on the lawn…”for rent”. So I wandered over, and checked the sign. It was for IH rent.  Curious, I went online to check it out. Sure enough, IH was a huge investment company that buys up distressed property and then rehabs it and rents it out. They boast something like owning 40,000 of these things.   
About a month ago I wrote about the illusion of the housing recovery, because it was outfits like this and blackrock and a dozen other that were scooping up 10 to 20K houses at a clip in any one area. On the SURFACE it looks like housing is on a major rip roaring tear…but it really isn’t. When an investment company takes 20K houses out of the availability pool, then obviously it leaves “less houses on the true market to buy” and those houses rise in price. Enough demand, but not enough supply. 
But there’s something more insidious than that, and I wrote to you all about that over a year ago. On the other side of mom’s block, there’s a guy who’s been a “squatter” in his home for almost 4 years now. He was foreclosed on in the crash, but didn’t leave. After some back and forth with the bank, they just basically realized that if they forcefully remove him, they’d have to take over mowing the grass and maintaining the property, etc. So they left him alone. He’s got a nice boat, just bought a new car… and has no mortgage or taxes to bother with. 
I mentioned to you all that there was an awful lot of that going on too, but most people just thought I was exaggerating. Well, I’m not. But something interesting DID change. The banks decided to something really “evil” so to speak. Four or five years ago, they’d rush in and foreclose on you if you hadn’t paid in 8 months. But then they had to account for that foreclosed property and place yet another home in the foreclosure pipeline.  When a particular area is shown on the foreclosure websites to be overloaded with these things, property values in the area plunge, effecting the payments on other mortgages. Well, they don’t like that, so they’ve decided NOT to actually foreclose on a lot of deadbeats, they just ignore it.  So, when you drive down any block in anywhere Miami…the house could be owned and being paid for, it could be foreclosed, but the people are still there, or it could be occupied, but they haven’t made a payment for years AND it hasn’t been foreclosed. 
Why would they do that? To give the illusion that housing is strong, and supply is dry, they decided to do what they can to keep supply low, thus boosting the existing prices. Realtytrac has now come out with a figure concerning how many of these “foreclosed” homes have folks living in them, and it is a real stunner. They say a whopping 47% of ALL these homes are still occupied by the original mortgage owner, but who have either quit paying or have been formally foreclosed.  Now think about that folks. There’s MILLIONS of homes in some form of foreclosure. Half of them have the family in them, but no payments! In some localized areas it is MORE than half. They say that in Miami, it is 64% of all foreclosed homes, still have the “owner” in them. Living large. 
In our area, Realtytrac says they’re 9,237 homes that are in the foreclosure portfolio. They say that in this area, 46% of these homes are still being lived in. So on any given day, 4,250 “families” in our area are enjoying a roof over their heads, nice bedrooms to sleep in, lovely air conditioning to keep them cool and usually a pool to barbeque next to.  But we’re in better shape than Miami. According to RT, 30,868 homes are in their own foreclosure pipeline, and a whopping 19,755 “families” are living large, without a care. ( or a payment)
This does several things to the economy and ALL of them are illusions. Grand illusions. First by artificially suppressing supply of homes, they have artificially inflated the prices of existing homes for sale. That’s bad for the folks buying these things at many thousands of dollars more than they are intrinsically “worth”.  Think about it folks. The MEDIA tells you housing is hot because of demand, and a recovering economy, and life is grand, so you rush out and buy a house for 15% more than it was 8 months ago… and you find out you’ve been duped.  There was no recovery and when these houses do come to market, you’re housing value will drop like a rock. Again. 
Second, all those folks that are living “rent free” are pushing excess dollars into the economy. They’re buying nice cars and clothes. Boats, RV’s, vacations, you name it.  Yet they are spending on items that they SHOULD NOT BE ABLE TO AFFORD, if they had to live under the rules we others have to live under. 
So, when you see these tremendous car sales figures, and then know a huge portion of them are going to SUB prime loans by folks squatting in homes they don’t own…you tell me how that is “good” for the economy??? It isn’t. It’s a grand illusion, and one that like all the others will be exposed as fraud.  When you look at some neighbor down the street with his new car, hanging out at the beach while on FOOD STAMPS, and living in his lovely home… just ask yourself…what happened to reality?? 
Our Main Stream Media is an abomination. It is part and parcel the lap dog for the mutants in Washington and Wall Street and their version of reality is straight out of the matrix. They think you’re too dumb to figure it out anyway, so why not tell the masses all these major destructive lies?  And as usual, the masses gobble it up as gospel. Like they did in 2000, like they did in 2007 and like they’re doing now. They just never learn. 
Don’t be fooled folks.  Housing didn’t recover, and squatter spending won’t carry us forever. Consider it. 

Public Banking Avoids Today's Debacle 
By Stephen Lendman
Putting money back in public hands where it belongs would avoid what's now ongoing. It's an idea whose time has come. 
It's how to run America's economy. It's about doing it responsibly. It's been done before. It's high time things worked that way again.
Money power in private hands doesn't work. The Fed's been looting America for a century. It bears full responsibility for today's crisis. Its deplorable record explains why. It includes:
  • ¥ rising consumer debt;
  • ¥ record budget and trade deficits;
  • ¥ an out-of-control national debt;
  • ¥ record numbers of personal and business bankruptcies;
  • ¥ millions of home foreclosures;
  • ¥ depression level unemployment, poverty, homelessness and hunger;
  • ¥ an unprecedented wealth gap between rich elites and ordinary Americans; and
  • ¥ a hugely unstable economy lurching from one crisis to another.
A 1913 dollar today isn't worth a plug nickel. At best it's about two or three cents. Wall Street planned it that way. It profits at the expense of ordinary Americans. It's high time that changed.
At one time, dollar value was defined as 1/20th of an ounce of gold or about an ounce of silver. 
Spot gold today sells for over $1,300 an ounce. Spot silver is about $21.50. Analysts expect much higher prices.
Current dollar value is based solely on America's good faith, credit, and ability to honor its debt obligations. It's true value represents the world's waning confidence in a dysfunctional system. 
It's for good reason. Self-serving politicians squabble for political advantage. They do so at the expense of ordinary Americans.
They don't give a damn how much suffering they cause. They're unwilling to govern responsibly for the good of the country.
Money power in public hands could help change things. Debt ceilings could be a thing of the past. Budgets could be simply funded.
America no longer would have to pay interest on its own money. It could create as much as needed interest-free.
Ellen Brown heads the Public Banking Institute. Her book titled "Web of Debt" explains the "shocking truth" about America's privately controlled money system.
It's a brilliant analysis of privatized banking. It explains how it usurped money creation power, how we can get it back, and much more.
Money power in private hands assures speculation, booms, busts, inflation, deflation, instability, crises, recessions, depressions, deprivation, despair, out-of-control debt, squabbles over whether to raise its limit, budget battles, and much more.
Public banks works as intended. Inflation-free sustained growth and prosperity follow. It's a "practical, proven approach," Brown explains. 
It works the same way everywhere. It worked in 18th and 19th century America. 
History reflects it worldwide. It's the antidote to corrupted, dysfunctional privatized banking. It helps neutralize self-serving politicians.

Imagine the possibilities:
  • ¥ federal, state and local debt could be substantially reduced or eliminated;
  • ¥ so could federal, state and local personal taxes;
  • ¥ America no longer would have to pay interest on its own money;
  • ¥ it's manufacturing base could be rebuilt;
  • ¥ healthcare, education, and other social programs could be funded inflation-free;
  • ¥ vital infrastructure projects could be undertaken on a scale never before imagined;
  • ¥ large-scale environment cleanup would be possible; 
  • ¥ so would alternate, sustainable, clean, safe, affordable energy development;
  • ¥ millions of new full-time/good-paying jobs could be created;  
  • ¥ unemployment for everyone able and willing work could end; 
  • ¥ so would foreclosures; 
  • ¥ affordable home ownership for millions more Americans would be possible; 
  • ¥ mortgages would be plentiful, cheap, and easily obtainable; they wouldn't be designed to scam the unwary;
  • ¥ booms and busts would end;
  • ¥ so would destructive currency devaluations and economic warfare for private gain;
  • ¥ personal pensions, savings, and investments would be secure; 
  • ¥ Social Security, Medicare, Medicaid, and other vital social protections would be safeguarded in perpetuity; 
  • ¥ Washington, America's 50 states, and local communities could produce comfortable surpluses; and 
  • ¥ overall sustained prosperity would provide everyone affordable or free healthcare, education, and other essential social services. 

It's not pie in the sky. Colonial America worked that way. It prospered inflation-free. It did so for 25 years. It did it with no taxation. It did it without paying interest to bankers.
Publicly controlled money works as intended. In "The Public Bank Solution," Brown writes:
"We have entered a millennium that is ripe with possibility." 
"New discoveries in agricultural production, water desalination, energy from non-oil sources, waste conversion, and much more are in the wings just waiting to be developed." 
"We have the manpower, the materials, the science and the intelligence to create prosperity for all." 
"Yet the world in which we find ourselves is one of austerity, mounting unsustainable debt, growing poverty and want. Why?"
Money power in private hands bears full responsibility. Political Washington permits it. Brown calls American banking "a tourniquet on production."
It's a "parasite draining (America's) resources away." 
Wall Street caused today's crisis. It continues festering out-of-control.
Major banks got bailed out. Ordinary Americans were sold out. That's how privatized banking works.
It doesn't serve business, industry or societal needs, Brown explains. It's self-serving for "private advantage."
Wall Street crooks "turn credit on and off at will, direct it to their cronies, or use it for their own speculative ventures; and they collect the interest as middlemen."
It's no small amount. It's about one-third the cost of everything we buy.
"(T)he ability to create money - as - credit ex nihilo (out of nothing), backed by the 'full faith and credit' of the government and the people, is properly a public function."
Proceeds for doing so should accrue to us. "The virtues of an expandable credit system can be retained while avoiding (privatized banking's) parasitic exploitation."
Public banks operate as intended. They serve everyone equitably. They do so "because they are owned by the people," Brown explains.
Public banking isn't about government ownership of property. It's about "government oversight" of credits and debits.
They "undergird a functioning economy." They assure it operates as intended. They guarantee everyone benefits equitably. They prevent what's now ongoing.
"By making banking a public utility, with expandable credit issued by banks that are owned by the people, the financial system can be made to serve the people rather than people serving the banks," Brown explains.
"Credit flow can be released so that industry and free enterprise can thrive, and the economy can reach its full potential."
Wall Street games the system. It does so for self-serving reasons. Speculation and debt needs more of it to prosper. 
It's a losing game. The greater the excess, the harsher the eventual day of reckoning. Monied interests head America toward banana republic status.
It's already a kleptocracy. It's run by criminal gangs. They pose as political parties. 
They conspire with Wall Street and other corporate favorites. They're looting America in the process. They're wrecking it for personal gain.
They're destroying personal freedoms. They're heading the nation toward tyranny and ruin. They're thirdworldizing it. They're turning it into a dystopian backwater.
Money power in public hands can go a long way toward changing things. Public banks don't have to earn profits. They're not beholden to Wall Street or shareholders.
Government creditworthiness alone would matter. Interest-free publicly created money in any amount needed assures it.
So is price stability as long as new money produces goods and services proportionally to demand.
Privatized banking assures out-of-control indebtedness. America is Exhibit A. 
Living standards today are eroding. Middle class society is disappearing. A permanent underclass is increasing.
Things don't have to be this way. Money power in public hands creates enormous opportunities. Everywhere it's been tried for centuries it works.
It does so today in China, Germany, Venezuela, Taiwan and other countries. It does in North Dakota. It's America's only public banking state.
In 1919, the Bank of North Dakota (BND) was established. Its deposits "are guaranteed by the full faith and credit of the State of North Dakota."
It's been trustworthy for nearly 95 years. Sound money practices deserve full credit. North Dakota has the nation's lowest unemployment rate.
Its record includes large budget surpluses. Its economy continues to grow. Jobs are created, not lost.
BND is a responsible credit machine. It helps agriculture, commerce and industry. It does so effectively. It does what no other state can match. 
It's because they're exploited by parasitic private banks. They're consuming their hosts. They're destroying America. They're sucking it dry. They're doing so it for their own self-interest.
Money power in private hands crowds out life sustaining systems. Predatory finance needs money to make more of it. Societal decay results. Debt multiplication is a slippery slope to self-destruction.
An eventual day of reckoning looms. Today's budget/debt debacle is a taste of what's coming. Predatory capitalism is carcinogenic.
It destroys species. It endangers life-systems. It creates intolerable levels of poverty, inequality and human misery. 
It benefits the few at the expense of most others. It's a cancer destroying its host. It doesn't have to be this way.
Public banks more than ever are needed. They help run economies responsibly. Doing so assures sustainable growth. Everyone benefits equitably. 
Banking, money and credit aren't market goods, explains Brown. They're "economic infrastructure."
Cheap available financing is essential for economic growth. Public banks make commerce, industry and agriculture more viable, stable, and sustainable.
It's worked as intended for centuries. It did so in 18th and 19th century America. Lincoln created money interest free. What followed turned the nation into an industrial giant.
What succeeded everywhere can repeat in today's America. It's by putting money power back in public hands where it belongs. It's an idea whose time has come.
It's government serving everyone equitably. Besides peace, good will, stability and security, what better idea than that!

Treasury warns default could be worse than Great Recession
The U.S. Treasury Department is warning that the economy could plunge into a downturn worse than the Great Recession if Congress fails to raise the federal borrowing limit and the country defaults on its debt obligations.
A default could cause the nation's credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to the Treasury report released Thursday.
Treasury officials hope by laying out potential consequences they will be able to bring pressure on Congress to act. Treasury Secretary Jacob Lew has said he will have used up the extraordinary measures to avoid breaching the debt ceiling by Oct. 17. After that, the government will have around $30 billion of cash on hand.
The report looked at the disruptions caused to financial markets during a similar stand-off between the administration and Congress over raising the debt limit. It then made projections about what could occur if there were an actual default.
In August 2011, Congress eventually raised the nation's borrowing limit before a default occurred but only after a protracted debate. The politics that nearly led to a default prompted Standard & Poor's to cut the nation's credit rating by a notch.
"As we saw two years ago, prolonged uncertainty over whether our nation will pay its bills in full and on time hurts our economy," Lew said in a statement. "Postponing a debt ceiling increase to the very last minute is exactly what our economy does not need—a self-inflicted wound harming families and businesses."
Our nation has worked hard to recover from the 2008 financial crisis, and Congress must act now to lift the debt ceiling before that recovery is put in jeopardy," Lew said.
The report notes that even the possibility of a default could roil financial markets and damage the economy, thereby harming American businesses and households. Sharp declines in household wealth, increases in the cost of financing for businesses and households, and a fall in private-sector confidence, all tend to undermine economic expansion. It also states that if the current government shutdown is protracted, it could make the U.S. economy even more susceptible to the adverse effects from a debt ceiling impasse than it was prior to the shutdown.
In the event of a default, the U.S. economy could be plunged into a recession worse than any seen since the Great Depression, it said.

"The U.S. dollar and Treasury securities are at the center of the international finance system. In the catastrophic event that a debt limit impasse were to lead to a default on Treasury securities, financial markets could be shaken to their core as was seen in late 2008, which resulted in a recession worse than any seen since the Great Depression."