![]() Moody’s Analytics said that a breach of more than a week could see U.S. Markets would still be rattled but would not create “the mother of all crises,” Brzeski added. Brzeski said the United States could avoid a technical default for a few weeks by continuing to pay bondholders at the expense of items such as social security or healthcare. debt ceiling by $4 trillion, postponing the next dramatic negotiation until after 2024.Ģ) A postponement of spending in other areas to keep bondholders whole until we get the first option.Ĭarsten Brzeski, head of macroeconomic research at Dutch bank ING, outlined the latter, saying that a debt "breach" would mean no "automatic reaction” to a deal failure. I am highly confident that this week will see one of two outcomes:ġ) A debt ceiling deal to raise the U.S. The current debt ceiling drama is the same as the last handful of debt ceiling dramas where politicians clash over spending and take it to the wire. debt, creating a catastrophe that would see all politicians losing their jobs? ![]() The debt ceiling drama is the same as the lastĭoes any professional investor believe that the White House and Republicans will allow a default on the U.S. In this article, I will discuss a potential downturn for bullion. The price of the precious metal rallied in the following weeks and is up around 17% since that date, matching the performance of the S&P500, accounting for a drop from the 2022 highs. In October 2022 I said we were close to a low in the gold (XAU-USD) price. ![]()
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