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Treasury default?
The price to protect against a Treasury default has been rising, too.
The icebreaker legislation moved the debt ceiling until 7 February, pushing the risk of a Treasury default into March or beyond.
Oct. 18: First possible day for Treasury default if Congress can't come up with a bill to raise the debt ceiling.
Just last week, it reprinted a 2011 essay by the University of Missouri economist Peter G. Klein saying that a Treasury default is no big deal.
In any case, the debt ceiling may have reached the end of its useful life last week after President Obama and Senate Democrats refused to negotiate, and Republican leaders showed that they would back down before letting the Treasury default.
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They are likely to react badly to even the possibility of the U.S. Treasury defaulting on its debts.
That might not be because investors are literally afraid of a Treasury default-by-inflation (or by any other means) at any time soon.
Will the US default on its entire debt?
And as in the US, default rates are rising.
As the GIIPS default, German banks will be in trouble.
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