blog

Latest from the Quantamize Blog

US is Broke at Summer's End without Debt Increase, Mnuchin Says

May 22, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • US Treasury Secretary Steve Mnuchin said today that the US will reach its debt limit and start to default on obligations by "late summer" if no debt ceiling were passed
  • He added he does not anticipate that Congress will not pass a debt limit increase
  • The US debt limit came back in force on March 2nd

US Treasury Total Outstanding Debt - 5 Years

total us debt

Source: Bloomberg

  • The Trump administration and Congress just started negotiations on a 2-year budget deal
  • Initially, debt ceiling and budget negotiations were separate, but have now been combined into one larger package
  • Without a budget deal, $126 billion in automatic cuts will occur in December, $71 billion of which will hit the military
  • The Trump adminstration is eager to avoid those but a deal requires getting something past the Democratically controlled House of Representatives
  • WIth the debt limit linked to a budget deal now, it's hoped all sides will have enough incentive to get a deal done 

 

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS