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The end is near! How will the Biden administration respond to the growing U.S. debt crisis??

On April 19, JPMorgan Chase said it expected a crisis in U.S. debt as early as next month, and the consequences of a technical default on U.S. debt were "extraordinary."。

On April 19, JPMorgan Chase said it expected a crisis in U.S. debt as early as next month, and the consequences of a technical default on U.S. debt were "extraordinary."。The bank also said the Treasury expects to run out of available resources by mid-August.。

Just a day earlier, Goldman Sachs also warned investors that the United States could hit a key debt ceiling deadline sooner than widely expected, as "weak" taxes could put the U.S. government on the "fast track" of a financial debt default.。

The debt ceiling is the maximum amount of money the U.S. government can borrow to meet its financial obligations.。Once the debt ceiling is reached, the U.S. Treasury can no longer issue any notes or bonds and can only pay for Treasury bills through tax revenues.。

Goldman Sachs had predicted that the U.S. debt ceiling "X-day" will be reached as early as the first half of June, while the small motorcycle only the next day to pull it closer to May, indicating that the U.S. debt ceiling problem is intensifying.。"X-day," which means that the U.S. government has spent government cash and some unconventional special measures in the debt ceiling negotiations, is also known as "Death Day."。

Goldman's chief economist and head of global investment research, Zus, said in a new report published Tuesday that while preliminary statistics reveal limited information, the "weak" taxes so far in April suggest that the likelihood of reaching the U.S. debt ceiling in the first half of June has increased significantly.。

For his part, Momo said signs of stress usually come two to three months before Xday, as money market funds (MMFs) that hold large amounts of U.S. Treasury bills will begin to claim more aggressively that they do not hold any U.S. Treasury bills maturing on Xday.。

At the end of 2021, the U.S. faced the debt ceiling, when Treasury Secretary Yellen urged Congress to adjust the ceiling on the issue, but was opposed by Republicans.。Eventually, under Yellen's continued mediation, U.S. President Biden signed a bill to raise the debt ceiling by 2.$5 trillion to 31.$4 trillion, extending the U.S. Treasury's borrowing authority until 2023, temporarily avoiding a default on government debt。

At this point, the U.S. federal government is once again "in debt," and U.S. House President McCarthy intends to "do the same."。On Wednesday, McCarthy unveiled the 2023 bill, called Limit, Save, Grow, which plans to raise the federal government's debt ceiling by another 1.$5 trillion, or extend it until the end of March 2024, and call on the Biden administration to negotiate。

McCarthy noted that the bill would cap government spending, slashing the federal budget to 2022 levels while limiting future spending increases to 1 percent a year.。

Yellen, who had previously helped the U.S. government temporarily unwind the crisis, also warned that a debt default would lead to a U.S. economic and financial "collapse."。

In response, Biden has said he only accepts an unconditional increase or suspension of the debt ceiling by Congress, but has also said he is willing to negotiate a separate budget with Republicans on the level of fiscal spending in 2024.。

U.S. credit default swaps have reached their highest level since 2011 this month, according to S & P data, which is considered a market-based indicator of debt defaults.。

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