Gold IRA Inform

Check out this informative article about the US debt ceiling and why it matters.
The debt ceiling is the upper limit of money that the government can borrow and has been raised 78 times over the past seven decades. The current limit of $31.4 trillion was reached in January, and Congress must once again raise the ceiling by early June, or the US government could default on its debt. This would have far-reaching consequences for the US and global economy, including delays to the payment of salaries, social security payments, healthcare subsidies, and the potential loss of jobs.
A default could also severely weaken global trade, cause a sharp decline in the US dollar, and spike the prices of oil and other commodities. The article discusses the main sticking points, with the Republican Party refusing to hike the debt ceiling without sweeping budget cuts, while President Biden wants the debt ceiling to be raised without conditions. Read on to learn more about this important issue.

US debt ceiling: How default could affect you – DW – 05/12/2023 The US government could start to run out of money if Congress fails to raise the debt ceiling by the end of the month. DW looks at the wider impact of a possible debt default.

It may seem counterintuitive at first, but the truth is that most of the money in circulation today is actually created as debt by banks.

When you take out a loan from a bank, they create new money by adding that amount to your account. This new money is essentially a promise from you to pay back the loan with interest, which means that money is effectively a debt that you owe to the bank.

But it's not just individuals who create money as debt. Governments also borrow money by issuing bonds, which are essentially promises to pay back the principal plus interest at a later date. These bonds are then bought and sold in financial markets, creating even more debt-based money.

So the next time you think about money, remember that it's not just a medium of exchange, but also a debt that we owe to someone else.

According to a recent report by the University of Michigan, US consumers are increasingly concerned about inflation, with long-term inflation expectations reaching a 12-year high. Consumers expect prices to climb at an annual rate of 3.2% over the next five to 10 years, with costs rising 4.5% over the next year. The report also showed a decline in consumer sentiment and a drop in buying conditions for durable goods, with high prices eroding living standards for 42% of respondents.

Source: https://www.bloomberg.com/news/articles/2023-05-12/us-consumer-long-term-inflation-expectations-hit-12-year-high?srnd=economics-inflation-and-prices