With longer-term U.S. interest rates rising and no plan to reduce the budget deficit, is a U.S. national debt crisis imminent? Topics covered include: Show Notes Moody's Ratings downgrades United States ratings to Aa1 from Aaa; changes outlook to stable—Moody's Ratings Research Update: United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative—S&P Global Interest Expense and Average Interest Rates on the … [Read more...]
433 Plus: Wealth Trackers Review, How Many Bond Funds, Inflation and the Trillion Dollar Coin
In Plus episode 433, we compare Kubera to Exirio. We discuss bond portfolio structure and compare the DoubleLine Core Fixed Income Fund to the DoubleLine Total Return Bond Fund. Finally, we discuss how federal budget deficits, quantitative easing, quantitative tightening, and minting a trillion coin contribute to wealth, liquidity, and inflation. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest … [Read more...]
433: What Happens If The U.S. Defaults On Its Debt? Here’s Why It Won’t
What are the grave consequences if the U.S. debt ceiling isn't increased and the government defaults? What would the Federal Reserve and the Executive Branch do to prevent default if Congress doesn't act? Topics covered include: Show Notes The Debt Limit Since 2011—Congressional Research Service 7 doomsday scenarios if the U.S. crashes through the debt ceiling by Jeff Stein—The Washington Post A debt ceiling default would send the U.S. housing market back into a deep … [Read more...]
418 Plus: Mortgage REIT Preferred Stock, Debt Ceiling Standoff, and Fallen Angel Bonds
In Plus episode 418, we review the current status of mortgage REITs and analyze the mortgage REIT preferred stock David recently purchased. We consider whether investors should move assets out of cash until the debt ceiling standoff is resolved. We consider options the U.S. Treasury has to meet its obligations including minting a trillion-dollar coin. Finally, we look at two ETFs that invest in bonds that have recently been downgraded to non-investment grade from investment … [Read more...]
416: Your Nation’s National Debt: 5 Things You Need To Know
We analyze the worrisome national debt situation in the U.S., UK, and Japan and consider what will determine the likelihood of default Topics covered include: Show Notes Debt to the Penny—U.S. Treasury Fiscal Data Federal Debt and the Debt Limit in 2022—Congressional Research Service Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political Science UK government debt and deficit: June 2022—Office for National … [Read more...]
360: Will the U.S. Default? Debt Ceilings, Government Shutdowns, and the National Debt
Why the U.S. is closing in on both a debt default and a government shutdown. Topics covered include: Show Notes America’s debt ceiling is a disaster, though fiscal rules can help—The Economist Treasury Bulletin, September 2021—Bureau of the Fiscal Service Major Foreign Holding of Treasury Securities—Department of the Treasury/Federal Reserve Board Fed official warns of ‘extreme’ market reaction unless debt ceiling raised by Lauren Fedor, Colby Smith and James … [Read more...]
169: The Debt Ceiling—What Happens If the U.S. Defaults
What could happen if the U.S. Congress doesn't raise the debt ceiling and defaults on U.S. financial obligations. In this episode you’ll learn: Show Notes The Debt Limit: History and Recent Increases - D. Andrew Austin - Congressional Research Service U.S. Department of Treasury debt limit documents Debt Limit: Myth vs. Fact - U.S. Department of Treasury Here's What Happened the Last Time the U.S. Defaulted on Its Debt - Matthew O'Brien - The Atlantic The … [Read more...]
