Just when you thought the debt ceiling issues were over, the government is ready to shutdown on Oct 2, 2023.
This is the exact same day markets fell apart in 2008 & would absolutely trigger the same panic (see the charts below).
Coincidence? This appears to be the narrativeš t.co/CY0GX9zGuC pic.twitter.com/17oUOL8dsC
— Financelot (@FinanceLancelot) August 9, 2023
The October 2nd, 2023 government shutdown aligns perfectly with the 2020 repeat pattern…
Just another "coincidence" though right? š t.co/6y0mriTv8w
— Financelot (@FinanceLancelot) August 9, 2023
Comments today on the potential government shutdown October 2nd. t.co/gGJD4yrHah pic.twitter.com/6Cfcmt7GSJ
— Financelot (@FinanceLancelot) August 9, 2023
A fresh fiscal showdown brewing in Washington risks strengthening Fitch Ratings' warnings that self-inflicted wounds are tarnishing US standing in the global economy t.co/LDVu0PBrFc via @bpolitics
— LongConvexity (@LONGCONVEXITY) August 7, 2023
āSpending is out of control ā¦ The reason why itās gotten to this point is because Republicans are so worried of 'a government shutdown.ā First of all, the government doesn't actually shut down, they take non-essential workers and then they don't work. But why do we haveā¦ pic.twitter.com/ASTfLwHfRJ
— DeSantis War Room š (@DeSantisWarRoom) August 2, 2023
twitter.com/WallStreetSilv/status/1689199840058593280
From Bad to Worse: The Federal Interest Expense Is Rising at An Exponential Rate
In 2018, CBO projections optimistically predicted the interest expense on the national debt would rise to 3.8% by 2035, surpassing defense spending. These projections assumed steady economic growth and consistent inflation. By 2020, the Covid recession occurred, followed by inflation and increasing interest rates amidst high deficit spending. Now, the interest on the national debt has soared to nearly a trillion dollars, or 3.7% of GDP. The CBO’s forecasts, which still predict only a slow rise in interest rates, appear unrealistically hopeful, especially as the current treasury market yields exceed 4%. With the deficit projected at $1.5 trillion for 2023, but already reaching $2.2 trillion. The nation’s escalating debt crisis is intensifying.
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The 2024 presidential candidates are being urged to commit to not altering Social Security. However, such a commitment indirectly supports a 23% benefit reduction by 2033 due to the impending insolvency of the Social Security retirement fund. This reduction equates to a $17,400 yearly cut for a typical dual-income couple retiring that year. The Social Security program’s trustees forecast the fund’s reserves will run out by 2033, leading to mandatory benefit reductions for all 70 million beneficiaries. Candidates avoiding the issue are essentially supporting significant benefit cuts for retirees in the near future.