It's definitely the time to bring out the clowns as MSM and much of the blogosfear are obsessed by the US debt ceiling smoke-and-mirrors circus that is being used as an excuse to explain potential market outcomes from a CRASH upwards, there is always a crash coming! And if the market soars then no problem it will soar because of debt ceiling positive developments, Whether UP or Down it will all be as a consequence of the DEBT CEILING! I have watched this circus take place every couple of years over the decades, it IS just a circus act for the Republicans and Democrats to prance around in front of the media, a smoke-and-mirrors TV show to remind the masses that they have all of the power and so if they chose to nuke the US economy.
Republican or Democrat, Trump or Biden makes very little actual difference, the US and all Western nations are effectively one-party states.
THESE are the FACTS
1. The US has never defaulted on its debt.
2. Congress has already authorised the government's budget.
3. The circus tends to get resolved at the last minute with both sides claiming victory.
4. The inexorable mega-trend is for the US to continue PRINTING MONEY (Debt) to the MOON! Hence a primary driver of the Inflation Mega-trend and stock prices as the Dollar continuously loses value in response to rampant money printing.
Hang on a minute isn't the US debt limit supposed to be $31 trillion? So how come it's being reported as $31.4 trillion? Debt glass ceiling! This illustrates that it really is just a circus for the politicians to gloat over and the MSM to obsess over, it's just a circus show folks. This is as deep as I want to go into the debt ceiling circus, it will be raised as it has some 100 times beforehand!
On a side note, the herd (MSM such as CNBC cartoon network) continues to obsess over short-term bonds (t-bills), the mantra goes why invest in risky stocks when one can collect 5.25% per annum in a T-Bill, to be blunt these fools are leading investors into a DEAD END. What happens when the bill matures? Say after 6 months You get your money back plus 2.625%, remember the rate the herd yap on about is the ANNUALISED rate. So now it's 6 months later and the 6-month T-Bill rate on offer is 4%? What now? Another 6 months? Rinse and repeat until it drops to 2% in 2 years' time. You've just wasted 2 years of a stocks bull market and end up with peanuts, even Long Treasury Bonds would have worked out a lot better due to capital appreciation as market interest rates fall bond prices go up - LESSON - Ignore what the herd proclaims one should do as it usually turns out to be WRONG.
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