Senator McCarthy: “I think at the end of the day we do not have a debt default”
What, you thought the debt ceiling debate was not a Kabuki dance for show this time after it has been just that every time they square off in this ritual that sees the supposed richest nation on earth hand wringing about better practices on debt spending for the public (and credit markets) to consume? Senator McCarthy let’s us know that at the end of the day we don’t have to worry about a debt default. Believe me, I’ve barely had a pulse about it, never mind worry.
There are details to be hammered out. But both sides of the aisle will find their “common ground” because without it, their aisle and the pieces of pie on each side, go out the window. What is an out of work politician? I don’t know the answer and these politicians never want to find out because this is what they do. They politicize.
It’s not a Kabuki dance; it’s a whole packed house Kabuki theater! McCarthy, Biden and the whole troupe of dancers actually do not want default, because it takes each of their pieces of pie and throws it right out the window. No pie, no pieces to slice for anyone. I believe they’ll resolve it as they always do, and we’ll raise the debt limit again. But first the Kabuki plays out because, after all, they (at the trough) really REALLY do care about how your tax money is spent. They want you to know that.
How surprising that Senator McCarthy had that to say as long-term Treasury yields postured to move bullish again. The noise of this theater appears to be whipsawing the bond market, which in my view would be following the disinflationary script, otherwise. In other words, bond yields would be following the signals of the weakening Fed Funds futures and easing. But not with the prospect of debt default in the headlines, eh?
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This is all so tiring. Conflict after conflict. Catastrophe after catastrophe. And oh, once this is over, hey, the news can go back to the Fed and is it Pausing? Or Not? Stay Tuned, Because Your 401k and Millions of Jobs depend on it! :-) And of course, gold does what it almost always does, disappoint. Sorry. Hope things are well, Gary!