COUNTDOWN TO CHAOS! US Government Shutdown Crisis:Will America’s Debt Spell Disaster?｜AsianQuickTake

Welcome to Asian QuickTake with Jacob. In this episode, we explore the looming crisis facing the U.S. government. As the new Speaker of the House endeavors to avert a potential government shutdown on November 18, Goldman Sachs warns that such a shutdown is imminent. The risk of a two- to three-week shutdown is increasingly likely as the federal government grapples with escalating debt and fiscal concerns. Earlier this year, Congress passed a short-term spending bill to postpone a government shutdown until mid-November. However, the U.S. Treasury’s subsequent auction of 5-year Treasury bonds revealed underperformance, underscoring concerns over high interest rates and a surging federal deficit. Wall Street is anxiously assessing the situation, with a potential government shutdown posing threats to the economy and financial stability, casting shadows over the U.S. credit outlook. Leading economists, including Moody’s chief economist Zandi and U.S. Treasury Secretary Yellen, caution against recurring government shutdowns, stating that they could have devastating consequences for the U.S. dollar and U.S. Treasuries. The continued rise in U.S. bond yields adds to these concerns. The U.S. financial markets are currently navigating a perilous course. JPMorgan Chase CEO Jamie Dimon has sounded alarms about the seriousness of the situation, comparing it to the 2008 financial crisis. As the U.S. Treasury grapples with a growing deficit, it has resorted to expanding the size of Treasury bills. Despite safe-haven purchases of U.S. Treasuries triggered by the Israeli-Palestinian conflict, multiple headwinds continue to pressure U.S. Treasuries. The declining trust in the dollar and U.S. Treasuries, along with the global trend of de-dollarization, presents a fundamental challenge to the dollar’s status as the world’s primary reserve currency. The move towards treating gold as a currency rather than a commodity is gaining traction in several U.S. states. Texas, for instance, is exploring gold-backed digital currencies as an alternative to the dollar. China’s efforts to de-dollarize its U.S. debt have led to a significant drop in its U.S. Treasury holdings, raising questions about its actual gold reserves and the potential use of gold to address the U.S. debt crisis. U.S. Treasury Secretary Yellen has expressed growing concerns about the U.S. deficit and national debt stability, calling on Congress to take immediate action. The risk of U.S. Treasuries liquidation and the fate of the dollar are now critical issues. America’s mounting debt deficits have become a real threat to the dollar and are starting to manifest in financial markets. Don’t forget to like this video, subscribe to our channel, and enable notifications to stay informed about the ever-evolving landscape of business, international relations, geopolitics, and global affairs that shape our world. 💯TOP 3 Video China Shocks Yellen With Massive Selling of U.S. Bonds and Buying of Gold ▶ China to Accelerate Dumping of Up to $800bn U.S. Debt ▶ Swiss Sells $36.4 billion U.S. Treasuries ▶ ━━━━━━━━━━━━━━━━━━━━━ ✅ COPYRIGHT DISCLAIMER Asian Quicktake Doesn’t Fully Own Some of the Materials Compiled in Its Videos. It Belongs to People or Organizations Who Ought to Be Respected. If Used, It Falls Under the Following Provisions: Copyright Disclaimer Section 107 of the Copyright Act 1976. “Fair Use“ is Allowed for Purposes Such As Criticism, Comment, News Reporting, Teaching, Scholarships, and Research. ━━━━━━━━━━━━━━━━━━━━━ ✅ If You Are the Owner of the Materials Used in This Video, Let us Know in the Comments or Send a Email to me. We Will Follow Your Request Immediately. ━━━━━━━━━━━━━━━━━━━━━ ✅ FINANCIAL DISCLAIMER This Channel’s Content Should Not Be Interpreted or Construed As Financial Advice. We Are Not, and Do Not Claim to Be, an Attorney, Accountant, or Financial Advisor. This Channel’s Content is Not a Substitute for Financial Advice and is Solely for Entertainment Purposes.