Where is the Fault Line?
By Gene W. Edwards.
Posted 5/30/2023, 6 A.M.
I have, for months, been predicting we’ll go within three days of default before the national debt limit is extended. Furthermore, we “could” have gone from three days to months into default before a deal was reached. Treasury secretary Yellen said all sources of money would run out of June 1; later, she said on the fifth. Now they’re saying the House will vote on the bill on Wednesday May 31, and that the bill might arrive in the Senate that same day for a vote. Here’s what I get, intuitively:
The bill passes in the House on 5/31 (one day short of June 1).
The Senate passes the bill on 6/2, Friday of this week, one week short of my most predicted date of June 9, a Friday, but exactly three days short of Yellen’s 6/5 “expiration” date, (Suggesting: don’t use the economy past 6/5, if we had defaulted, because the package has expired.)
On what date, will enough money be freed up by the legislation for our treasury secretary to be caught up vs. de facto default for a few days, people, and arms of our government, waiting on late checks, IOUs not sufficing? My answer: June 9.
Will Biden, after the signings — soon invoke the 14th amendment to do away with all future debt limit restrictions and votes in Congress to extend our public debt limit? My answer: He won’t. He’s focused on the General Election on November 8, 2024, and the present bill carries our nation debt into 2025.
If Biden did invoke our 14th amendment to make our debt limit a “leave-alone,” would our conservative Supreme Court overturn Biden’s decision? My answer: probably! The 14th amendment sprang out of our Civil War era.
On the same subject, the 14th amendment also says anyone convicted of seditious conspiracy cannot run for public office. Will Trump be convicted by the D.O.J.’s Jack Smith investigator of seditious conspiracy? My answer: No. Perhaps a lesser charge. Smith will, however, convict Trump on his mishandling of classified documents. In 2024. Sentence: two years in a federal prison. Let’s hope Trump doesn’t stink up my Florence, Colorado’s Supermax Prison.
Will credit-analyzing agencies, such as Moody’s, downgrade U.S. treasuries soon because of the USA’s taking our treasury bond risk to almost the point of money and credit default? My answer: the USA’s credit standing will soon be dropped down one more level from today’s, forcing the USA to pay new U.S. treasury bond purchasers a higher interest rate.
When will our fiscal year expenditures and receipts match? My answer: Won’t happen. Our economy runs, and prospers, on inflation caused from borrowed money, etc. By sharply cutting tax rates, Trump ran up our national debt in four years by almost eight trillion dollars! Of course, his numbers looked good — until COVID-19. If I could just give you $4,000 after you read this blog, wouldn’t you be happy, despite the fact that your money wouldn’t go as far from that point on?
At what trillion-dollar point could our economy go bust? My answer: I still say 34 trillion. In 2026.
Gene is one of the world’s best intuitive psychic predictors, using insight, about the past, present, and future as well as being one of the world’s most interesting, relevant, and best writers
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