In this episode of Not The Daily News, 10X’s Head of Investments, Chris Eddy, and Michael Avery unpack this concept of a self-imposed debt ceiling (legislated upper limit to debt), which can seem both terrifying and farcical.
Fairly regular near-breaches result in dramatic brinkmanship between Democrats and Republicans, lots of tit-for-tat and plenty of horse-trading, as well as real consequences such as a potential government shutdown and concerns around US sovereign ratings.
History has seen this politicking spill over, sending global markets into a tailspin. Whilst a potential default might grab the headlines, Chris points to this being indicative that the runway for future fiscal stimulus is coming to an end.
Listen to the full episode here:
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