US Debt Ceiling Negotiations Continue

US Debt Ceiling Negotiations Continue.

Negotiations continued overnight between Congress Democrats and Republicans where each controls different houses of the US Government (Senate and the House of Representatives).

Quite simply, the US government will run out of money to service debt on Thursday.

The Democrats (Labour) wish to raise the debt ceiling (their overdraft limit) and the Republicans (Conservative) want greater spending control.

Comment

We cannot see a deal  not being brokered.  If the unthinkable happens and the US defaults on its debt payments (think Greece!), there will be a bond market and stock market crash.

We are still on red level for investment warnings.  Although, markets appear to be gradually rising as expectation of a deal being agreed today.

Watch this space, it will go to the wire.  But it again raises concerns that the World’s largest economy’s Government is essentially bankrupt.  Debt needs to be managed and reduced whether it is your own credit card or if it is a country.