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The memo reveals that Nick Banner, Mr Blair’s chief of staff in his role as Middle East peace envoy, had spoken to David Welch, the US official who was negotiating with the Libyans over compensation for victims of terrorism.
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As America runs lows on cash there is a risk investors could lose confidence in Washington and stop reinvesting in U.S. government debt. Every Thursday, the Treasury pays investors back about $100 billion that investors immediately lend back to the government, a process known as rolling over the debt.
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