Buyers In Control - December 2, 2011

[ilonaross]

The debt ceiling has faded from the headlines, but it's still an issue.

http://seekingalpha.com/article/3116...-as-next-month

I don't understand whether the action by the six central banks, which seems to imply QE3 and money printing, is at odds with the debt ceiling.

Is this apples and oranges, or is it pertinent?

Can someone please explain....

[EB]

The debt ceiling has faded from the headlines, but it's still an issue.

http://seekingalpha.com/article/3116...-as-next-month

I don't understand whether the action by the six central banks, which seems to imply QE3 and money printing, is at odds with the debt ceiling.

Is this apples and oranges, or is it pertinent?

Can someone please explain....

The central bank liquidity swaps are a monetary, as opposed to fiscal action. Monetary actions do not directly affect government debts, though they do indirectly inasmuch as they affect borrowing rates. Accordingly, the Dollar swap lines lent by the Fed will affect the Fed's balance sheet but not that of the US, so the debt ceiling is not really an issue.