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| By Martin Weiss |
An epic budget war is brewing in Washington.
It’s not just a political war between Republicans and Democrats.
Nor is it the rerun of similar budget squabbles from years past.
This time, it’s being fought by the most reckless spenders and the most ruthless budget-cutters America has ever seen.
This time, it’s taking place in the midst of four converging crises that have never before come together at the same time:
The worst bank failures since the Great Financial Crisis.
The worst inflation in 40 years.
The biggest risk of depression since the 1930s.
Plus the small — but rapidly growing — chance of one of the worst wars in the history of mankind.
Still, everyone seems to think the folks in Washington, D.C. will simply meet behind closed doors, cut a slimy deal and call it a day.
Just like they’ve always done before.
True? I’m not so sure.
Fact is, the U.S. government now faces a greater risk of an outright default on its debt since the Civil War.
According to the Bipartisan Policy Center, America is fast approaching its “X-Date” (as soon as July), when it runs out of money to meet maturing debts coming due.
And according to the Pew Research Center, the two sides are further apart today than at any time in the past half century.
They’re armed to the teeth. They’re looking for blood. And the time remaining to resolve this millennial conflict is quickly ticking away.
What might be the consequences of an outright default by the federal government of the biggest economy on the planet?
Chaos.
Chaos in the market for U.S. government securities.
Chaos in the market for bonds and debts of all kinds.
Chaos in every stock market, every futures market and every options market in North America, Europe, Asia or beyond.
But without trillions in new borrowing, there’s only one way the government can avoid an outright default on its maturing debts:
By defaulting on its solemn promise to pay Social Security benefits to 67 million Americans …
By defaulting on its commitment to pay benefits to over 5 million veterans …
By defaulting on its obligation to defend the U.S. dollar against devaluation and collapse …
By defaulting on its implicit promise to bail out all the nation’s major banks if they fail, and …
By reneging on its commitments to support Ukraine, defend Taiwan or participate in NATO.
In other words, by defaulting on nearly everything else.
Yes, Congress and the White House may come through with an 11th-hour deal that dodges the catastrophic consequences of America’s X-Date.
But in a broader sense, they cannot avoid the Great American Default of 2023.
Nor can we count on them to avoid radical measures that, directly or indirectly, confiscate our wealth to cover their assets.
This is why we’ve devoted so much research and effort to finding the best possible defensive weapons for investors.
This is why I’ve introduced you to this private deal that’s off Wall Street and in the most promising crisis-proof sector of the economy. (All enrollment is closing permanently tomorrow.)
And it’s why we have more defensive strategies coming later this year.
In the meantime, be sure to watch this before it all ends tomorrow. We will never open it back up again.
Good luck and God bless!
Martin
