Topic: How To Invest

What is Pat’s commentary for the week of May 30, 2023

Article Excerpt

The debate on raising the U.S. debt limit seems to have shifted in a way that will bring an agreement by the June 5 legal deadline, or soon after. When the two U.S. political parties have these quarrels, it broadens the political split within the country, and rattles the stock market. The media tend to exaggerate the risk of an impasse that prevents Washington from paying its debts and bills on schedule. They dramatize things by referring to “a federal government default on its debt.” However, it’s not as if the U.S. government will go bankrupt. It will simply get a little behind on some of its payables. When cash is short, any organization may pay some debts faster than others. Meanwhile, tax revenues will continue to flood into the U.S. Treasury. It’s true that things could spiral out of control if the federal debt reaches its legislated limit and Congress fails to raise it. If that situation went on for long, it…