Actually, The United States Has Defaulted Before

United States Supplanted by China’s Thirst for Oil

Yet it may come as a surprise that the United States has still not destroyed all of its massive supply of deadly nerve agents. In fact, neither has Russia. Both Washington and Moscow signed the Chemical Weapons Convention of the 1990s, which forbid the use, production and stockpiling of chemical weapons. And both countries missed the convention’s extended deadline last year to destroy all of their chemical weapons. This fact was highlighted during Friday’s ceremony awarding the 2013 Nobel Peace Prize to the Organisation for the Prohibition of Chemical Weapons , which is helping to eliminate the Syrian army’s stockpiles of poison gas. “Certain states have not observed the deadline, which was April 2012, for destroying their chemical weapons,” the Nobel committee noted in its official announcement of the coveted peace prize. “This applies especially to the USA and Russia.” The United States estimates it will be at least another decade before it completes destruction of the remaining 10% of its chemical weapons, estimated at more than 3,100 tons. Russia has more than five times that amount left to destroy, according to the OPCW. While it’s unclear exactly how many chemical weapons Syria has, U.S. intelligence and other estimates put its chemical weapons stockpile at about 1,000 tons stored in dozens of sites. Syria’s chemical arsenal at a glance The storage igloos at the Utah depot where munitions were stored and the destruction facility, in the background.

The United States thus did default once. It was small. It was unintentional. But it was indeed a default. And the nation still stands. But that hardly means we should run the experiment again and at larger scale. Zivney and Marcus examined what happened to T-bill interest rates as a result of this small, temporary default. They find a surprisingly large effect. As best they can tell, T-bill interest rates increased about 60 basis points after the first default and remained elevated for at least several months thereafter. A simple way to see that is to look at daily changes in T-bill yields: T-bill rates spiked upwards four times in the months around the default. In November 1978, Henry Dr. Doom Kaufman predicted that interest rates would rise. They did. Turn-of-the-year cash management disrupted rates as 1978 became 1979. And rates spiked and fell in October 1979 when Paul Volcker announced that the Fed would target monetary aggregates rather than interest rates (the Saturday night special).

The United States is still getting rid of its chemical weapons

It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy . The United States appears to be losing its status as the world’s top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques. While China’s 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries’ crude consumption varies significantly. The United States could be the world’s largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously. See more on this topic in the following video. Stocks to buy to play the United States energy bonanza Record oil and natural gas production is revolutionizing the United States’ energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry willpad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, ” 3 Stocks for the American Energy Bonanza .” Don’t miss out on this timely opportunity; click here to access your report — it’s absolutely free. Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days .

United States

jury said…. Read More VW’s top execs split on unionizing Tennessee plant, report says 4:50 pm U.S. ET | Oct. 10, 2013 Volkswagen AG’s top executives are divided over whether and how workers at the company’s Tennessee assembly plant should be represented by a union, but ultimately will insist on a formal vote by those employees, a person with knowledge of the VW board’s thinking said…. Read More Toyota trims plug-in Prius price to improve sluggish U.S. sales 12:30 pm U.S. ET | Oct. 9, 2013 Toyota is reducing the price of its 2014 plug-in Prius models in the United States to try to boost sales and meet a California mandate as automakers find that cost is critical to consumers’ willingness to buy rechargeable autos…. Read More Toyota judge says complaint about juror unsubstantiated 7:34 pm U.S. ET | Oct. 9, 2013 A Los Angeles judge said a juror’s complaint that a fellow panelist in Toyota’s trial over a fatality linked to unintended acceleration wasn’t participating in deliberations was unsubstantiated….