Right on cue after our article yesterday on the looming debt ceiling, overnight shares fell and gold and bonds rose as the market became increasingly concerned about Trump getting this passed.
cnn.com
At a rally in Phoenix yesterday Trump threatened closing down the Government to get Congress to pass funding for his beloved wall, declaring “If we have to close down our government, we’re building that wall,” ..and… “One way or the other, we’re going to get that wall.”
Reports via the New York Times that the relationship between Trump and Senate Majority Leader Mitch McConnell is becoming toxic added to fears and even prompted Fitch Ratings to warn the country risks a review of its sovereign rating if it fails to raise the limit next month. The NYT said the latest twist regarding the wall “dramatically raises the spectre of a shutdown in October”.
Whilst the market focus is on the debt ceiling, this is intertwined with the other big hurdles before Trump in passing the budget and the long awaited tax reform that was so pivotal in the Trump share rally. Indeed a recent Morgan Stanley client update called this the “three-headed policy monster”.
These are also independent issues too in that we could well see the debt ceiling raised but still have a Government shutdown in October on the back of a ‘wall’ standoff. Any one of the ‘three heads’ can and might bite and this Trump administration has not had a great track record so far of getting anything through itself let alone Congress.
The other big Trump bogey-man is his trade agreement reforms and the impact this will have on global trade markets, not just the US. This came to the fore as well yesterday with Trump reiterating his intentions to end NAFTA.
It was all a lot for the market to digest and there was another shift to ‘safety’ which saw both gold/silver and bonds up. What we find just a tad ironic is that bonds are up amid talks of the US potentially defaulting on the very same instrument. US Treasuries are the ‘go to’ paper safe haven as they are backed by the mighty US Government. Gold is the other safe haven backed by 5000 years of history, intrinsic value, and not a piece of IOU paper in sight…. Which would you trust?
This is an original article written today for Ainslie Bullion
Get your Precious Metals while you still can. Sale ends soon. Sales good while supply lasts.
Congratulations @nolnocluap! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPi don't see how things don't hit the fan this fall... something has just got break down with this economy... let's just hope it's peaceful (meaning no war or other crap)
The flattening yield curve is screaming bad times ahead. The Fed has really painted itself into a corner.
Got silver?
You really are one prepared wombat @preparedwombat. Silver is my weapon of choice too
Completely agree and hope for the same but I fear the reality may be different. Thanks @clumsysilverdad
"Shit hits the fan" not things.
I believe in "sound money" - Silver, Gold, and Bitcoin
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.ainsliebullion.com.au/gold-silver-bullion-news/safe-harbours-amid-cyclone-trump/tabid/88/a/1607/default.aspx
Good time to be holding gold. Can you get any mates rates with Ainslie Bullion?
I wish I could @buggedout! I web order through the online shop like everyone else mate 😊
Well, I hope they are paying you decent. Your work is good.
😆
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by nolnocluap from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
This post has received a 1.04 % upvote from @drotto thanks to: @banjo.
Very interesting, his madness must out, his blatant lying surely will result in some reaction...
A government shut down wouldn't necessarily be a bad thing. trump could show the dumbocrats that he is serious about trying to slow the growing deficit.
Lots of RINOs would also get the message, maybe. But then again probably not. They are RINOs after all.
Agree that a display of sincerity would be of benefit but as you say, the display may be for a blind audience.
Great post
& upvoted :)
Thanks kindly @etherealcreation