Washington's latest debt-ceiling fight could mean 'volatile month' for markets, analysts warn | Metals Mine

  • Washington's latest debt-ceiling fight could mean 'volatile month' for markets, analysts warn

    From marketwatch.com

    The Bipartisan Policy Center’s prediction “could mean that September is a volatile month in Washington and for financial markets,” said KBW analysts in a note. “‘Normal’ does not live in Washington anymore, so while we think chances favor a resolution on the issue, we also need to acknowledge that the chances Congress will drop the ball have risen,” they also wrote. KBW’s team said both Republicans and Democrats want to avoid another partial government shutdown, but the “December/January shutdown showed that political compromise is a lost art and a repeat of that shutdown is possible, even if unlikely.” Related: ... (full story)

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auricforecas
Jul 14, 2019 8:23am
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Well remember that Trump is the money wizard, this kind of (debt) risk is like a walk in the park for him.
He has 50+ years of experiences, not counting his eye-dropping LEGO years when he learned from his father under the desk, as he described it

So he will find a very creative way to keep the TRUMP TRAIN running, at least till the next election
There are (still) many ways to make (or to SHOW) a quick buck to help with the ceiling or just to increase it
Worst case, close some of the less important parts of the GOV, as it/he did before
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EF5
Jul 12, 2019 1:47pm
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So lets assume we come down to the wire again on this... If memory serves, the Treasury has some funds in the banking system it can pull if needed. But is liquidity there to do it? I'm guessing no this time given the Fed Funds Rate - IOER spread. Treasury might need to coordinate with the Fed on an IOER cut to make that happen... Tail risk of a debt default is bullish for gold, and a possible IOER cut would be doubly bullish.
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