The US treasury is running low
Debt ceiling is at its precarious ebb
Agreement is needed soon
Things are looking quite gloom
What happens next, no one can foretell

#debtcrisis #debtceiling #usdefault #treasury #yellen #limerick #poetry

https://www.cnn.com/2023/05/17/economy/debt-ceiling-callout/index.html

"A prolonged default could be devastating, with crashing markets and panic-driven layoffs if confidence evaporates in a cornerstone of the global economy, the US treasury notes."

Again I ask you, what would investors invest in that they would consider safer than US treasuries and which would be able to absorb the volume without yields tanking?

The stock market will suffer, sure, but a default that everyone knows is political theater isn't going to cause total pandemonium. What might cause pandemonium is a default with no expectation that an actual deal can be reached. But this is a very different situation than the Speaker election, because there are enough Republicans in competitive districts that they will eventually make a deal with the Democrats no matter how much it pisses off the extremists.

https://www.theguardian.com/business/2023/jan/19/us-debt-ceiling-reached-biden-republican-face-off

#economics #USecon #debtceiling #congress #default #USdefault #bonds #treasuries #USdebt #USbonds #uspol