Debt Ceiling Disaster *JUST* Flipped | Dollar Collapse.

well there's a lot of fear and drama and uncertainty and a doubt about the debt

ceiling about whether or not the debt ceiling is going to get extended are we

going to have a massive market crash in capitulation because the recession

begins right around the same time that we start fighting about the debt ceiling

we're expecting to hit what's known as the X date between July and September

but before you mark your calendars about July and September

thank you for being here and we might not actually need to get to July and

September because Kevin McCarthy has just

revealed the potential ballpark outline of a plan that he has we don't have

complete details of the plan yet Kevin McCarthy will be showboating about his

plan on Monday at the New York Stock Exchange and we'll be getting more

details on his plan but he did just unveil unveil a plan and why does Kevin

McCarthy matter well because he is the Speaker of the House

the Democrats obviously want to extend the debt ceiling the Democrats control

the Senate the Democrats control the administration and the White House Biden

Administration as a result you have Democrats who say we should just extend

the debt ceiling without any limit and no conditions we should just raise our

borrowing Authority and allow us to spend more money on whatever we want if

we want to send another couple hundred billies over to Ukraine we can do that

well there's a balance of power again we have a divided Congress and Kevin

McCarthy on the right in the house says you know what we need spending cuts we

can't keep spending like drunken Sailors no offense to Sailors can't keep

spending money like this and just raising the debt ceiling willy-nilly we

need to start cutting back and so Kevin McCarthy has been pretty

set on not unconditionally extending the debt ceiling and this has led to a lot

of nervousness that oh my gosh what if this is the year

the United States defaults on its debts which Jerome Powell would who's the

chairperson of the Federal Reserve says would be a financial catastrophe other

bankers and individuals we could play countless people on TV saying it would

be hell the market would crash we'd be going into a deep recession the dollar

would plummet nobody would believe in U.S treasuries anymore the Petro dollar

might explode China might take over everything dies if we don't extend the

debt ceiling all this drama and quite frankly we've extended the debt ceiling

78 times before so it's expected to get extended again but now we actually have

a plan and so the plan from Kevin McCarthy is the following

we won't raise the debt ceiling we'll extend the debt ceiling just one more

year we'll have a vote in late May and we'll vote just to give an extension

until 2024 because yeah that's not raising the debt ceiling it's just an

extension it's marketing it's raising the debt ceiling okay and what we want

in order to get that are concessions now and then another set of concessions next

May before the election in 2024. basically in English now that ceiling is

probably going to get raised and it looks like it's actually going to get

raised before it even becomes a problem given that Kevin McCarthy is actually

putting on some level of reasonableness by trying to negotiate this earlier

rather than at the last minute so look from the in the middle point of view

here you got to give some credit to Kevin McCarthy for at least starting

this plan earlier thank goodness it's not a last minute plan this is a good

thing so you got to get some credit here it's possible they're doing this on

purpose even though technically they will be giving in and raising the debt

ceiling it's possible they want Kevin McCarthy to be seen as somebody who's

actually bringing stability to American politics because nobody really trusts

American politics and by bringing stability to American politics maybe in

the 2024 election people will remember I highly doubt it but maybe people

remember hmm Kevin McCarthy wasn't a loose cannon maybe Republicans aren't

that bad right that I think when you're looking at sort of your independent and

your on the margin voters that might be a consideration so really America as a

whole wins because the debt ceiling crisis is postponed before potentially

causing massive Market turmoil and more uncertainty in an already rough time

heavily inverted yield curve which is a signal of recession at our doorstep a

banking crisis Mass layoffs beginning it's a massive mess

so Republicans here might actually be pulling off a pretty good move now their

proposal is that non-defense discretionary spending ndd for 2023 is

to stay flat and grow at only one percent for the next 10 years it's

basically trying to put a limit on the amount of money the government can spend

now let's understand what ndd is because it's a little complicated but I'll make

it as simple as possible there are two types of spending think about it this

way every week you have to pay or every month you have to pay your rent and you

have to pay your groceries and and you basically have certain mandatory

expenses right in your own households these are things you have to spend money

on no matter what that think of as a mandatory expense for the government

mandatory expenses are things like Medicare Medicaid Social Security

unemployment labor and they even called pin endemic stimulus mandatory spending

which we could debate about that in a different video then you have

non-defense discretionary so non-defense just means let's not talk about the the

uh the military right now right let's cut that out for a moment let's instead

talk about uh the discretionary stuff which would be your public health

foreign aid uh the CDC Transportation Parks infrastructure the Coast Guard the

FAA law enforcement the IRS education K-12 higher education Sciences Economic

Security like low income assistance and grants basically non-mandatory things

this is where the Republicans are saying we want a cap on basically all of

government's Choice spending and there's now a debate in terms of what that cap

should be now Democrats haven't yet responded and obviously they're in

control of of two-thirds basically of the power stock structure in DC the

presidency and the Senate and Republicans have one third but you need

all three of them to make this happen so the expectation is there'll be some kind

of negotiation around the percentage growth for this non-defense

discretionary spending and it's unclear yet if Republicans are going to force

cuts to uh the military and defense spending segment why that's important is

because a lot of Republicans are frustrated that it feels like the Biden

Administration is sending too much money to Ukraine potentially pushing Putin to

the edge of World War III and using strategic nuclear weapons whereas

Democrats say no we have to do everything in our power to support

Ukraine this is an invasion by Russia this is much more than a territorial

dispute we need to have the battle on with Russia on the Ukrainian Battlefield

before it expands to Europe and America so these are you know the arguments that

are basically being made on both sides but the bottom line here is we we're

actually seeing more progress this year in negotiating the debt ceiling increase

than we really have ever before now I think that's really awesome and I also

think stream yard is really awesome which is what I'm using to record this

video with check out metcaven.com stream yard to learn about stream yard and the

streaming platform that you can use basically edit videos with and live

stream we're not live stream throw up banners like this little paid promotion

banner I could throw up or if I wanted to throw up uh a a different Banner on

stream yard I could do that if we wanted to throw up a banner around the bottom

talking about my courses on building your wealth and life insurance we can do

that as well so go to metcaven.com to learn about stream yard but anyway

bottom line is instead of like this last minuteing that you've generally been

used to seeing in Congress Kevin McCarthy is actually trying to take a

proactive approach here now Democrats will probably end up freaking out about

this this uh these limits that Kevin McCall Dorothy is trying to impose

anyway so a fight could still happen this does not mean the debt ceiling

crisis is over but let's just put it this way

we're in April and we've probably got until September to deal with this debt

ceiling crisis that's about five months and we're already seeing pretty awesome

progress on this negotiation and it gives me confidence that really as part

of the Nike Swoosh recovery the debt ceiling crisis is just going to be

another piece of unfounded fud the debt ceiling will get extended another year

and ultimately there are some great opportunities to look at buying stocks

and eventually there'll be some opportunities I think as well to buy

some real estate and of course you know regardless of what the market is there

are ways to make money in real estate uh in fact that's what I started a real

estate startup on is no matter what the market is you can buy properties below

market value fix them up for less than the difference you're getting in the

price in other words you're getting a good deal building Instant Equity in the

property and rent them out it doesn't matter what the market is in that case

which is pretty exciting still think there'll be a better opportunity to buy

come Q3 Q4 but we'll see either way debt ceiling crisis is not one of the things

that I've personally am highly worried about and I personally don't think you

should either but then again even though I'm a licensed financial advisor this is

not personalized Financial advice for you so hopefully that gives a little bit

of insight into the debt ceiling