Speaking of pain, it has been an exhausting month of trying to gauge what the American Administration and Congress will do to raise the debt ceiling.  It is vital for Public Service employees to garner a paycheck for the work they do. Not only is this important to maintain services but it also will be important to help maintain the cost of supporting the deficit, it’s all about cash flow.

In the event that a default was to occur, the effects would be considered catastrophic. Many lenders need the cash flow to maintain the cost of funds or could face bankruptcy. This would make the debacle of what was the Subprime lending crisis, look like a walk in the park. The potential for a market collapse is imminent but the question becomes will an agreement avert this pending disaster or prolong the inevitable?

Nonetheless, the combination of debt with re-emerging inflation amplifies household debt to the point that families will not be able to carry the cost of owning a home or the lifestyle they presently lead.  The American Dream could quickly turn into a nightmare if finances don’t get back into a manageable position.

Consequently, Canadians maintain the largest household debt in terms of percentage of income. Canada tops the list of G7 countries as families struggle to make ends meet.

Click below to see for yourself:

https://www.tiktok.com/@theuneducatedeconomist/video/7236564144617540869

Today, Jobless Claims surprisingly improved to 229k vs (245k) expected. Further US Real GDP grew to an annual rate of 1.3% in Q1 vs expected (1.1%). Playing the devil’s advocate, government spending by hiring individuals could be a big part of skewing the data. Therefore, if the less likely scenario of no agreement is forthcoming, these numbers are meaningless because the shit will hit the fan.