The US treasury anticipates the US will run out of money to service their commitments as early as the first week of June. If you think you’ve heard this before, you’re not wrong. The federal government hit its legal debt limit in January - $31.4 trillion; however, the House Republicans approved a bill to let the country keep borrowing money, but with strings attached. Fast forward six months, and the US is flirting with officially defaulting for the first time in its history.
Let’s put some things in perspective. Since 1960, Congress has raised, extended, or revised the debt limit 78 separate times - 49 times under Republican presidents and 29 times under Democratic administrations. The challenge isn’t whether an agreement will happen but if the two sides can compromise and meet in the middle before it’s too late. The last time it was this hotly contested was in 2011, but cooler heads prevailed as a deal was agreed upon two days before the deadline.
Will this time around be similar? Check out my comments in the following video:
*Any view or opinion expressed in this article are solely those of the Representative and do not necessarily represent those of Harbourfront Wealth Management Inc. The information contained herein was obtained from sources believed to be reliable, however accuracy is not guaranteed. The information transmitted is intended to provide general guidance on matters of interest for the personal use of the viewer, who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law or factual situations of any individual or entity. Any asset classes featured in this article are for illustration purposes only and should not be viewed as a solicitation to buy or sell. Past performance does not necessarily predict future performance, and each asset class has its own risks. As such, this content should not be used as a substitute for consultation with a professional tax or legal expert, or professional advisors. Prior to making any decision or taking any action, you should consult with a licensed professional advisor.
Harbourfront Wealth Management was one of Wealth Professional Magazines 5 Star Brokerages for 2022. Wealth Professional is a free online information resource for all Canadian advice and planning professionals. This is not a paid award Harbourfront Wealth Management is not a sponsor.
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