Like tax time, your annual physical, and the (sometimes) annual Family reunion, that pesky debt ceiling drama has come back into the news cycle. We are getting a lot of questions about this, so we want to share a few thoughts. Unfortunately, partisans and fearmongers are doing their best to stir up the national anxiety. As if we need any help with that!
So, before I get too flippant on the topic, let me say that if the US were to ever default on the national debt, it would be a major crisis the world over. And, despite the info below, I can never say anything about the future with complete certainty, but….
The “debt ceiling” issue is quite regular, yet every time it comes up, we’re told it is the most important and contentious one ever. The various media outlets will start quoting deadlines for government programs and even putting “countdown clocks” up on their broadcasts. Remember, they get paid by getting clicks and eyeballs. We just can’t help but look.
So, I thought this Tweet from Ryan Detrick of Carson Investment Research would prove helpful, just to provide some historical context on this matter:
As you can see, we’ve had 89 debt ceiling increases in 64 years. This is hardly a rare occurrence. And every President since Eisenhower had multiple increases under their Administration. We don’t expect a different outcome here.
My final point is that, like most people, Politicians value their job security. If we default on our national debt, it is safe to say they are out of a job. Sometimes they don’t act that bright, but they understand this. Most of the “drama” is just political jockeying.
Speaking of jockeying, don’t forget to catch the Kentucky Derby this weekend! It will be almost as entertaining as the debt ceiling bickering that will be hitting your airways soon.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. Economic forecasts set forth may not develop as predicted. Tracking #435006-1