Debt-ceiling megafight looms

Friday, 25 November 2022

Bear Traps has a good note today. Note that during the last debt ceiling crisis in 2011, long bonds and DXY rallied while stocks were murdered.

Taking Back the House, Fighting the Ceiling

The midterms are over, Republicans have taken back the House and we expect an epic fight over the debt ceiling. The high drama may start far earlier than many expect. After taking back the House in the November 2010 midterm elections, hysteria started by the summer of 2011. The “Tea Party” Republicans-in control of the purse strings-pushed the U.S. to the brink of a technical default.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.