Debt Debacle

A two-year suspension of the debt ceiling that passed in 2019 will expire on 7/31/21, 12 days from now. Congress must either extend the current suspension or pass a higher debt ceiling limit. If neither occurs, the Treasury will relatively soon be unable to pay all its bills. While this kabuki theater plays out, bank on short-term rates rising as bond buyer fears of not being paid timely play out.

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