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.