Don’t worry “there is an infinite amount of cash at the Federal Reserve”.
https://twitter.com/WallStreetSilv/status/1635470213377323008
Lay off ALL nonessential federal employees. Let them know there will be no pay for not working and use the funds saved to keep from defaulting on the debt.
Lay off ALL nonessential federal employees. Let them know there will be no pay for not working and use the funds saved to keep from defaulting on the debt.
Lay off ALL nonessential federal employees. Let them know there will be no pay for not working and use the funds saved to keep from defaulting on the debt.
The good news, yesterday my T Bill came due and was paid. Bad news, where to put the “cash”.
I understand in the event of a default, the law requires all interest in government debt be paid first. So, as money comes in from taxes and other fees, it goes out in priority order. So, there will be no non payment of fed interest. Beyond that, there is a cascade of what gets paid first. I have no idea what that order is but rest assured, the feds will be closest to the top of the list.
T bills 9 months paying over 5.1% as of 10AM today. Some CDs over 5.5%.