RUSH TRANSCRIPT Thank you ░░░░░░░░ friend Edward Lawrence on ░░░░░░░░ that John tamney real ░░░░░░░░ markets editor what he ░░░░░░░░ about this Are you ░░░░░░░░ John No This is ░░░░░░░░ political device that is ░░░░░░░░ the debt ceiling is ░░░░░░░░ party controls the purse ░░░░░░░░ the time uses it ░░░░░░░░ a hammer to the ░░░░░░░░ side to get a ░░░░░░░░ concessions We know they ░░░░░░░░ not default We know ░░░░░░░░ debt limit will be ░░░░░░░░ There are bills to ░░░░░░░░ this is politics always ░░░░░░░░ been Neil nevertheless we ░░░░░░░░ a history of bringing ░░░░░░░░ to the brink ironically ░░░░░░░░ 2011 even though they ░░░░░░░░ the brink S P ░░░░░░░░ downgraded the American debt ░░░░░░░░ of craziness up to ░░░░░░░░ agreement and keeping the ░░░░░░░░ lights on If we ░░░░░░░░ to get something like ░░░░░░░░ are markets prepare forked ░░░░░░░░ Are you Of course ░░░░░░░░ are Let s remember ░░░░░░░░ happened in 2011 There ░░░░░░░░ the downgrade What happened ░░░░░░░░ yields in the subsequent ░░░░░░░░ They actually went down ░░░░░░░░ more valuable treasurys Markets ░░░░░░░░ what happened in 2011 ░░░░░░░░ will just add this ░░░░░░░░ that the U S ░░░░░░░░ never defaulted laughable In ░░░░░░░░ we very specifically defaulted ░░░░░░░░ devalued the gold from ░░░░░░░░ 20 20 to 1 ░░░░░░░░ That we seen defaults ░░░░░░░░ then That is not ░░░░░░░░ defend what happened in ░░░░░░░░ and since the notion ░░░░░░░░ would end if we ░░░░░░░░ in technical terms this ░░░░░░░░ not a serious discussion ░░░░░░░░ having said that default ░░░░░░░░ means not making good ░░░░░░░░ a payment to Social ░░░░░░░░ recipient or Medicare recipient ░░░░░░░░ holding interest on bonds ░░░░░░░░ notes that sort of ░░░░░░░░ We don t make ░░░░░░░░ on that any one ░░░░░░░░ those then what Well ░░░░░░░░ what Except for we ░░░░░░░░ that is not going ░░░░░░░░ happen How we know ░░░░░░░░ is not going to ░░░░░░░░ is the fact that ░░░░░░░░ U S Treasury can ░░░░░░░░ at the lowest rates ░░░░░░░░ the world It can ░░░░░░░░ at the lowest rates ░░░░░░░░ the world because we ░░░░░░░░ a revenue problem By ░░░░░░░░ I mean the whole ░░░░░░░░ to lend to the ░░░░░░░░ that is backed by ░░░░░░░░ most productive people on ░░░░░░░░ This isn t me ░░░░░░░░ all the government waste ░░░░░░░░ me government spending is ░░░░░░░░ massive tax but let ░░░░░░░░ not pretend when we ░░░░░░░░ the debt limit we ░░░░░░░░ there won t be ░░░░░░░░ investors lined up to ░░░░░░░░ to the United States ░░░░░░░░ if we want to ░░░░░░░░ debt we take less ░░░░░░░░ Paradoxical truth no one ░░░░░░░░ to seem to acknowledge ░░░░░░░░ very interesting premise John ░░░░░░░░ we are the default ░░░░░░░░ in town Not default ░░░░░░░░ the bad term but ░░░░░░░░ finds us in very ░░░░░░░░ times but that used ░░░░░░░░ be the case with ░░░░░░░░ British pound a long ░░░░░░░░ ago Everyone thought it ░░░░░░░░ be a while before ░░░░░░░░ would replace the British ░░░░░░░░ Of course eventually became ░░░░░░░░ American dollar Are you ░░░░░░░░ that our heyday might ░░░░░░░░ us though These type ░░░░░░░░ incidents pile up and ░░░░░░░░ might become alternatives You ░░░░░░░░ about China looking at ░░░░░░░░ basket of currencies to ░░░░░░░░ with the United States ░░░░░░░░ of that has gone ░░░░░░░░ but I m wondering ░░░░░░░░ these precip 10s change ░░░░░░░░ I hope there is ░░░░░░░░ in the future Do ░░░░░░░░ like how treasury overseen ░░░░░░░░ dollar in the last ░░░░░░░░ or five decades We ░░░░░░░░ seen substantial devaluation with ░░░░░░░░ dollar during that time ░░░░░░░░ there is global competition ░░░░░░░░ terms of currencies government ░░░░░░░░ private money that would ░░░░░░░░ a good thing to ░░░░░░░░ a better performance out ░░░░░░░░ treasury but I don ░░░░░░░░ think this is something ░░░░░░░░ here I m not ░░░░░░░░ worried about it simply ░░░░░░░░ if you look at ░░░░░░░░ what is 30 year ░░░░░░░░ A market signal what ░░░░░░░░ investors think the future ░░░░░░░░ be We don t ░░░░░░░░ the yields skyrocketing That ░░░░░░░░ a market sig that ░░░░░░░░ the investor class revenues ░░░░░░░░ higher now they will ░░░░░░░░ exponentially higher in the ░░░░░░░░ making all the debt ░░░░░░░░ easy to pay back ░░░░░░░░ you hope because debt ░░░░░░░░ piling up in the ░░░░░░░░ of higher rates cost ░░░░░░░░ it We ll see ░░░░░░░░ it works out John ░░░░░░░░ Appreciate having me Neil ░░░░░░░░ Lloyd with a different ░░░░░░░░ on this What do ░░░░░░░░ think John says don ░░░░░░░░ cheer it but don ░░░░░░░░ fear it Not the ░░░░░░░░ 6 world National debt ░░░░░░░░ 40% of our