The debt limit standoff could be really disastrous

Bloomberg/Bill Dudley/5-2-2023

“I have one message for those observing or involved in the standoff over raising the US federal debt limit: Be afraid, be very afraid. At this point in the financial and economic cycle, the consequences of failing to reach a deal would be particularly dire.”

USAGOLD note: The markets are generally complacent about the debt-ceiling standoff and that is because, after considerable sound and fury, the political parties have always agreed and avoided a potential debt market meltdown. Some, though (including former head of the New York Fed Dudley), believe this time is different…… Treasury Secretary Yellen warns that the federal government could run out of money as early as June.