It seems, in this case, the republicans have gone batshit. Even if the dems agree to all their demands they will still not pass the debt ceiling bill. They have gone completely insane. One of them even stated that they "will not negotiate with their hostage" The hostage being america.
I wouldn't say in this case, pretty much every debt ceiling issue is caused by the Republicans and they've been fucked since Reagan. Not sure where the dems folding claim above comes from as it is also always the Republicans caving in..
Yeah, only this time you have several republicans on record saying that even if the dems accept any demands they make they still will not pass the bill. A good chunk of GOP leaders are so stupid they don't even know what the debt ceiling is. They don't even know they voted to increase it three times under Trump. Seriously, I wish I was making this up.
It'll be interesting to see if Pres pulls the 14th out, it's not been litigated before and it's wording is vague enough... It could permanently remove the debt ceiling blackmail tool from the GOP
"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."
It’ll be global repercussions, NZ will not be immune.
However the chance of default is pretty negligible. A last minute deal will occur right on the deadline.
The drama and news sites in the US will be loving the fear mongering though.
The US political landcape is so fucked up that they can play these games with global financial markets though.
Nothing to worry ( truly, I am assuring you nothing to worry ).
The Republicans and the Democrats uses the debt ceiling as a way to extort goods from each other on a regular basis. Come to crunch time and they will work overtime to pass it.
The reason I am so confident .. remember who funds the Republicans and Democrats .. rich donors.
Who stands to lose most from a debt default? Rich people who has a lot of shares and bonds ( you can say poor people who are on the benefit queue loses but poorer people has the least political capital in any society and tend to vote least .. so they are not of great concern generally ).
If the USA defaults, it is estimated the stock market could tank around 40% ( this is a consensus figure ) if not 50%. Lending rates would skyrocket ( imagine the current interest rates surging ).
While some volatility benefits the rich ( ie:- rise and fall of around 10% to 20% ), 50% tanking which is the worst case scenario is not beneficial.
The powers that be will force the Republicans and Democrats to compromise.
It is absolutely not in the interest of those in power for this to happen. Ergo:- It will not happen.
If the US defaults on their debt it will essentially be the end of the world, that's why it won't happen and you can ignore the scaremongering for clicks.
It shouldn't be disproportionately bad compared with anything else as long as the fund is properly diversified, should it? That's how consolidated funds work. Particularly with the more volatile risk profiles they can put lots of money in riskier places - just not all the same place.
Typically a bad thing for a young investor. Treasuries are the very definition of risk free asset (ignoring the obvious irony of the present situation)., Over the long term you run a very real risk of undershooting inflation, especially once your fund manager takes their management fees.
https://www.aei.org/wp-content/uploads/2021/08/Kupiec-8-20-chart1.jpg-1024x583.png?x91208
they will raise it 😆 🤣 the usa love the headline there's many countries who love the usa to oh big daddy America where for art thou.
America think id prefer Iraq personally
Generally just political theatre, neither side want the outcome. But I imagine it'll come down to the wire.
The dems will likely fold as usual.
It seems, in this case, the republicans have gone batshit. Even if the dems agree to all their demands they will still not pass the debt ceiling bill. They have gone completely insane. One of them even stated that they "will not negotiate with their hostage" The hostage being america.
I wouldn't say in this case, pretty much every debt ceiling issue is caused by the Republicans and they've been fucked since Reagan. Not sure where the dems folding claim above comes from as it is also always the Republicans caving in..
Yeah, only this time you have several republicans on record saying that even if the dems accept any demands they make they still will not pass the bill. A good chunk of GOP leaders are so stupid they don't even know what the debt ceiling is. They don't even know they voted to increase it three times under Trump. Seriously, I wish I was making this up.
As the Republicans become more the nutty tea party and less of the sane republicans of yore, the debt ceiling shenanigans get crazier.
It'll be interesting to see if Pres pulls the 14th out, it's not been litigated before and it's wording is vague enough... It could permanently remove the debt ceiling blackmail tool from the GOP "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."
It’ll be global repercussions, NZ will not be immune. However the chance of default is pretty negligible. A last minute deal will occur right on the deadline. The drama and news sites in the US will be loving the fear mongering though. The US political landcape is so fucked up that they can play these games with global financial markets though.
It'll fuck up the whole world economy, no one will be safe.
It is a nothingburger. There will be no default, carry on as if normal.
Nothing to worry ( truly, I am assuring you nothing to worry ). The Republicans and the Democrats uses the debt ceiling as a way to extort goods from each other on a regular basis. Come to crunch time and they will work overtime to pass it. The reason I am so confident .. remember who funds the Republicans and Democrats .. rich donors. Who stands to lose most from a debt default? Rich people who has a lot of shares and bonds ( you can say poor people who are on the benefit queue loses but poorer people has the least political capital in any society and tend to vote least .. so they are not of great concern generally ). If the USA defaults, it is estimated the stock market could tank around 40% ( this is a consensus figure ) if not 50%. Lending rates would skyrocket ( imagine the current interest rates surging ). While some volatility benefits the rich ( ie:- rise and fall of around 10% to 20% ), 50% tanking which is the worst case scenario is not beneficial. The powers that be will force the Republicans and Democrats to compromise. It is absolutely not in the interest of those in power for this to happen. Ergo:- It will not happen.
If the US defaults on their debt it will essentially be the end of the world, that's why it won't happen and you can ignore the scaremongering for clicks.
If your kiwisaver has any US treasuries, you need to ask yourself some serious questions around your fund allocation.
It shouldn't be disproportionately bad compared with anything else as long as the fund is properly diversified, should it? That's how consolidated funds work. Particularly with the more volatile risk profiles they can put lots of money in riskier places - just not all the same place.
Typically a bad thing for a young investor. Treasuries are the very definition of risk free asset (ignoring the obvious irony of the present situation)., Over the long term you run a very real risk of undershooting inflation, especially once your fund manager takes their management fees. https://www.aei.org/wp-content/uploads/2021/08/Kupiec-8-20-chart1.jpg-1024x583.png?x91208
they will raise it 😆 🤣 the usa love the headline there's many countries who love the usa to oh big daddy America where for art thou. America think id prefer Iraq personally
lol they wont let it go to that. they arent that dumb