Raise Debt Limits.

arriba-Sep-27-2022-04-42-00-27-AM

Raise Debt Limits.

Dear investor.

 

Food for thought: It would be fair to assume further rate hikes are coming.

 

That being said; Let´s discuss the consequences of this expected move which is  not a secret. 

 

The U.S. government is going to raise its debt limits, obviously increasing further total debt owed. Here´s the part that's not a secret.

 

The current interest to service the U.S. debt, interest payments, no principal payments, surpasses a trillion dollars a year.

 

A trillion dollars, not a billion dollars; those days of solving government debt issues with billion-dollar payments are over. Plain and simple.

 

This story is now taking shape; common sense tells you...all additional rate hikes from current levels impact government payments dramatically. 

 

Every inch upward devastates corporate America's ability to pay and hurts the working class who is forced to pick statements out of a hat and see which one they can afford to pay?

 

This reality is well known at the Fed. Investors must recognize when market cycles are close to an end, and new cycles are on the horizon. 

 

These cross-currents are acquisition  opportunities. 

 

For long-term investors, any price break in front of a potentially major change is a call to action.

 

 Short-term: Headlines are your buying opportunities.

 

Long-term: Fundamentals are your guide.

 

Much success to all.  

 

Depository relations:

London - Singapore - United States

Canada - Australia - China - Switzerland

Brinks - IDS - Loomis - The Perth Mint

info@intlmetals.com

 

Comentarios

Entradas populares de este blog

A Slippery Slope.

When Rates Start To Fall.

Rates Remain As Is.