On 2nd August 2011 I believe it was that the debt ceiling was raised by 2.15 Trillion dollars, to take the U.S. national debt outstanding to just over 16 Trillion dollars. Some of the television channels display the figure, showing just how close it is to the top figure. What happens then, people may wonder.
At the same time, some channels are displaying the numbers of days, hours, minutes and seconds to the countdown, as if they can't let people just remember it is midnight on the last day of the year, when most people will just be merry with a drink or two and probably looking skywards as firecrackers light up the sky in celebration.
The debt ceiling figure when it is reached will be totally at the discretion of the U.S. Federal Reserve and its Chairman, Dr Ben Bernanke, and the U.S. government, to adjust it upwards. The response yesterday was a no-comment, although I believe it is necessary and prudent that the ceiling will have to be raised by another One Trillion for another year. In the meantime, the figures from the U.S. suggest a continuing though lukewarm Recovery, but the signs are positive in the U.S. Housing market, with interest rates at an all-time low, likely to give people courage to buy houses over the coming months.
Some commentators have suggested an additional stimulus to the $40 billion a month Mortgage Backed Securities purchase, in the form of another $45 billion per month to purchase government securities. This would be a prudent move, and perhaps a figure of $60 billion per month may be more comfortable.
Car sales in Europe may be lower than in previous years, but exports to overseas remain strong, as evidenced by figures quoted for the British car manufacturers by PM David Cameron recently.
The manufacturing figures from China also give hope that a corner has been turned and things are moving in the right direction. Both technical and fundamental figures from China give a positive picture. In 1990, a rising star in the Politburo made a prediction, and subsequently the GDP moved up. That rising star assumes the reigns of power in China in March, the Party Chief Xi Jinping.
The above factors suggest to me a continuation of the worldwide economic Recovery, for that I pray.