🎭 Political Theater - The Debt Ceiling Drama
Over the past week, there has been nonstop news coverage of the federal government hitting the $31.4 trillion borrowing limit known as the debt ceiling. Once again, Washington drama is on center stage as the Treasury Department enacts "extraordinary measures" to not default on its obligations. Although this has become a regular occurrence, many investors are still understandably nervous. While it's unclear how this will play out politically before the estimated June 5 deadline, the fortunate news is that financial markets have taken these events in stride. How can investors maintain perspective around the fiscal uncertainty despite the political theater?
We discuss in this episode of The Wealth Effect Podcast:
📈 Federal Debt-to-GDP
🏦 Federal Budget Deficits
📊 Owners of U.S. Treasuries
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
The federal government has hit the debt ceiling
The government has run budget deficits throughout history
Most Treasuries are held domestically
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