Posted on 05/24/2023 3:49:52 AM PDT by Kaiser8408a
I have gotten a flood of emails and text messages asking about what happens if Biden defaults on the US debt. In short, Biden has made a career out of spending money, as has Speaker McCarthy. They both have an incentive to raise the debt ceiling, but whether it is cuts to Biden’s insane budget (higher than Covid-era spending) and wants to raise taxes on the middle class to pay for it. McCarthy wants a trimmed budget (aka, back to pre-Covid spending levels) and NOT raises taxes. They will eventually agree somewhere in the middle (US Congress member Pramila Jayapal will be outraged, but then again, she is ALWAYS outraged like Senator Elizabeth Warren) and AOC.
The Federal Reserve has taken a brief respite from fighting inflation that they helped cause. But with $188 TRILLION in unfunded entitlements promised by politicians, The Fed will undoubtedly start buying assets again (aka, QEInfinity) and the debt ceiling will keep being raised. In essence, the DC merry-go-round is broken and politicians will keep pushing it around until it collapses.
For the moment, The Federal Reserve is reducing M2 Money (green line). With it, the US Dollar (blue line) has declined. Gold (white line fever) is on the rise along with The Fed’s effective funds rate.
WTI crude is up over 1% this AM. And gold is up 2.29%. Heating oil is up 3.56%.
Face it, I have no confidence in Treasury Secretary Janet Yellen, one of the biggest propronents of MMT (modern monetary theory or borrow and spend without consequences). Yellen is NOT making lose my blues.
Cryptos are down this morning across the board.
(Excerpt) Read more at confoundedinterest.net ...
Fed can print money without a Debt limit increase...
The Feds take in $14B/day in revenue. They can pay the debt bill.
Agreed, no need to panic over the debt limit
MMT = Magic Money Tree
A Fed government shutdown doesn’t shut down revenue collection. Funny how that works.
newsflash...
Bitcoin still 26,000 times more valuable than the dollar
These idiots will kill the economy. Investors are waiting with their fingers on s the dump all button. Every one knows the government no longer serves the people, only themselves.
bringing in $14b/day is ‘only’ $5.1 trillion per year
our debt is ~$40 trillion.
assuming interest on the debt of 6%, that’s ~$2.4 trillion per year...
which leaves ~$ 2.7 trillion for paying down the debt and spending.
they will spend $5 trillion of which $0 will go to paying down the debt.
if they were a consumer with a credit card, their credit score would be below 400 and their cards would all be max’d out
Investors are waiting with their fingers on s the dump all button.
~~~~~~~~~~~~~~~~~~~~~~~~~
And then do what?
... our debt is ~$40 trillion.
You left out the $180T+ of “unfunded liabilities” (the illegal Ponzi schemes of SS/MediXYZ)
Remember Covid
Small medium business were shut down.
Gubmint employees? They kept getting paid cause they are (???) vital!
Yes, National Debt + Unfunded Liabilities was north of 204 Trillion Dollars and that was some time ago.
Gold Up
It’s down by 15.30 going at 1977.40
Dow down 293.38
The market going to be iffy for a bit it’s not keep an eye on many long term events 2023 a suck year.
AMD stock After hours $119.25 +10.98 (+10.14%)
Today it was down over $2 then before the close it was up .03 cents. UP about $30 in 17 days. $40 after tomorrow!
Now the after hours showing a big move UP.
It is going up as competitor Nvidia had a good quarter.
Their stock after hours $388.40 +83.02 (+27.19%)
The market has been yoyoing for over a year nothing on a solid track nothing stable nobody know what Biden and party will do next everything is a let’s try this.
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