Debt Ceiling DeadlineMay 31, 2023
If you do not know what is going on with the U.S. debt ceiling negotiations, congratulations. That probably means you have a life that you are actually enjoying instead of listening to political and financial media every day.
However, for those of you who are following along, here are some facts about the debt ceiling. The debt ceiling was created in 1917 and it has been raised 78 times since 1960, and just over 100 times since it was first created. It was raised 18 times under President Ronald Reagan, 8 times under Bill Clinton, 7 times under George W. Bush, 7 times under Barack Obama, President Trump raised it three times, and the debt ceiling has been modified a couple of times since Joe Biden has been president.
The point is, everybody knows the debt ceiling is going to get increased. It is just a matter of whether it is going to be a week, a day, or an hour before the deadline when congress and the White House settle on a plan.
Smart financial people like Jamie Dimon, Warren Buffett, and others say that we do not even need this debt ceiling. The United States is only one of two countries in the world that has a debt ceiling and it has become such a political weapon that the negotiating seems to hurt the economy more than the politician’s solutions help the economy.
So, we will just have to wait and see what happens over the next few days, but it is very likely the debt ceiling will get increased, or the limit will be suspended.
No matter what happens, I do not think anybody comes out the winner in this. It is just a matter of which political party ends up not looking as bad as the other.
The opinions and commentary of the author are provided for general and educational purposes only and are not intended to provide legal, tax, or investment advice.
Information is as of the date published and may not contain updates or changes to the topics covered.
This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types; advice of any kind; or a solicitation of an offer to buy or sell any securities or investment services.
Wyatt Moerdyk is the CCO, and Managing Member of Evidence Advisors, LLC, a registered investment advisory firm.
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