Welcome back to the channel everyone today i want to talk about the us debt ceiling, most likely not being raised and how that's going to cause the mother of all short squeezes. So stay tuned and let's make some money, but before i dive into the video, i just want to give a massive shout out to the 4 900 of you that have currently dinged that notification bell, because you guys are always the first to watch a new video As soon as it's released so guys be sure to drop a like down below subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video, just like this one and just a quick one before i dive in with The key information be sure to sign up to block fighty up to 250 worth of free bitcoin linked in the description below also be sure to sign up with moomoo to get three free stocks when you use the special thomas james. Investing promotion also linked in the description below, and i want to dive straight in with the key information. So, as the gop digs in on the debt ceiling, democrats try shaming, mcconnell senator mitch, mcconnell says republicans will not support raising the federal borrowing limit weeks before a potential default democrats do not appear to have a strategy for doing so.

Senator mitch, mcconnell of kentucky is adamant that, if democrats insist on spending trillions of dollars on their priorities, then they are responsible for raising the borrowing limit without republican votes, with the government's full faith and credit on the line. The democratic leadership strategy for raising the federal borrowing limit seems to be this. Try to shame the impervious senate republican leader mitch, mcconnell of kentucky intercapitulating. They unsuccessfully tried this strategy in 2016, when mr mcconnell blockaded the nomination of the judge into the supreme court, maintaining that voters should decide who would name the next justice when they picked a president that november they also tried and failed again late last year weeks, before A presidential election when a death opened a supreme court seat to fill no matter what voters had to say a month and a half later now, when a potential government default is weeks away.

Democrats are again demanding that mr mcconnell back down this time from his vow. To lead republicans in opposition to raising the statutory limit on the treasury department's authority, to borrow, let's be clear, mr mcconnell wrote on twitter on wednesday with a democratic president, a democratic house and a democratic senate democrats have every tool they need to raise the debt limit. It is their sole responsibility. Republicans will not facilitate another reckless partisan, taxing and spending spree now.

This is obviously not great news and it looks ever more likely that the u.s is about to default on its debt levels and on top of this, everything has just died. Kicking off in china - and it looks like it's already starting to bleed through into u.s markets. The s p 500 opened today down a percent and a half, and it's now currently down nearly two and a half percent, and all of this comes at a very, very coincidental time, as my next article is about to show jerome powell orders an ethics review after Fed presidents disclose multi-million dollar investments. How coincidental! I wonder if the big guys at the top are just about to be forced to sell their shares, because it's an ethical concern, federal reserve chairman jerome powell directed staff to review their central bank's ethics rules after several fed presidents disclosed large investments and stock trades news Of powell's inquiry broke arthur senator elizabeth warren sent 12 letters to the fed's regional bank presidents, demanding stricter ethics around stock buying documents revealed that dallas fed president robert kaplan traded apple, amazon and delta airlines stock.

In 2020., the massachusetts democrat called on each fed president to institute a ban on the ownership and trading of individual stocks by senior officials at each regional office. I guess it would just be terrible timing if all of those senior officials were forced to sell their stocks today, just before a massive market crash, and they obviously wouldn't be getting punished if they sold their stocks now because well, they're being forced to, and maybe that Ban should be lifted. I don't know in say six to 12 months when the market is fully bottomed out and is just starting to recover. Maybe what a great time to remove that ban - and we quite literally have that statement right there amid the public backlash, both kaplan and rosengren have agreed to sell their individual stock holdings and most likely already sold them.

Maybe a week or two ago before the market started to crash, so it looks like a perfect excuse for all of those senior officials to get out just in time and face absolutely zero backlash. Clearly, those top officials know that something is going on and they know the market is literally just starting to crash, speaking of which, if we have a look at the market directly from finvis, we can see that pretty much the entire s p 500 is having a Massive massive red day other than seemingly utilities now i do also find it very very interesting that the u.s market is having such a major impact and such a major drop today of all days, because this is all happening while chinese markets are closed until wednesday, they Are freaking out right now and they can't sell when markets open on wednesday they'll be selling while the financial capital of asia hong kong is closed. This is a financial bomb constructed for panic. Clearly, everyone out in china at the moment is going to be watching the u.s market, absolutely tank and they're going to get very, very panicked, but they can't sell off their chinese securities because the market is closed until wednesday.

Currently, it's the mid-autumn festival out in china at the moment, which means that there's a public holiday from september 19th, the sunday until the 21st, the tuesday, meaning that the markets are closed monday and tuesday and don't open again until wednesday. Therefore, everybody out in china has to sit and watch the s p 500 drop today and more than likely drop tomorrow as well, and then as soon as it opens up on wednesday, everyone in china will be selling their stocks watching the chinese market tank as well. I think it's going to be like a tennis game back and forth. The us market is currently dropping which is going to cause the chinese market to drop, which is then going to cause the u.s market to drop further on wednesday and thursday, as well guys before.

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If you want to pick up, some gsx coin then be sure to follow the link down in the description below, but obviously be sure to do your own due diligence and your own research, as this is not financial advice. Now i also told you in one of my videos the other day that i did not think that evergrande was unique and i thought evergrande was typical. I told you that i think there's another 10 to potentially up to 50 chinese property companies that are about to go bankrupt, and would you look at that? We've got an article that was written today. Saying contagion worries as chinese property.

Developer cynic sinks 87. This is possibly the most insane chart. I've ever seen a few days ago on friday and thursday cynic was trading at around four hong kong dollars per share, but today, as of monday, the stock fell 87.01 and is now currently trading at only 50 cents or 50. Hong kong cents per share on top of this cynic holdings also just requested a trading haul.

At the request of cynic holdings trading in the shares and debt securities of the company on the stock exchange of hong kong has been halted with effect from 3 38 pm. On monday, the 20th of september, pending the release of an announcement which would constitute inside information, so that was obviously after the stock failed to around 50 cents a share, and i imagine that announcement is going to be that the company is obviously bankrupt. The company has a 9.5 246 million dollar bond due on october 18th and fitch ratings, revised its outlook to negative. Just last week.

The monday share plunge has slashed its market value to just under 230 million dollars, which is tiny for a listed developer in the city. An officer at the firm's hong kong office said there is no one to attend to media inquiries. It's the same story as everywhere else. Investors are concerned about the liquidity said philip say director and head of hong kong and china property research at bocom international holdings company limited.

I think there are most likely some margin calls on some of the major shareholders by looking at cynic's stock price pattern. This afternoon, therefore, it's already showing that evergrande is not a unique, one-off bankruptcy. I think a very large portion of the chinese property developed market is just about to go under and therefore it's not just gon na be evergrande's three to five hundred billion worth of debt. When all the companies add up and mount together, it's going to reach well into the trillions and obviously u.s institutions and u.s.

Banks have very very large holdings in these chinese property development companies and in their debt, and therefore it's going to massively impact the us and uk markets which we are starting to see already. There is going to be margin, calls on the chinese side and also on the u.s side as well, and therefore a lot of institutions are going to have to completely restructure their portfolios, selling off tons and tons of securities in the process. But when you think about it, that also means that a lot of institutions that are currently shorting stocks that are about to get margin called, are going to have to cover those shorts and buy back their shares. Yes, obviously, for the moment they're going to be profiting on those shorts, because obviously the stocks are all falling, but when they get margin called because all of their long positions just evaporate.

That means they're going to get margin called and be forced to cover those shores. Therefore, that's why at the moment we're seeing amc full because obviously the rest of the stock market is falling as well, but when these institutions get margin called because all of their stocks have fallen too much they're going to have to cover their shorts and buy back Their amc short positions - i did actually have a lot of comments on my video earlier asking why amc wasn't going up because it had a negative beta. Yes, obviously, amc does have a negative beta, but at the moment there is a lot of panic in the market and that's why amc is falling as well. But, as i said when all of the stocks have fallen so much that it causes margin calls when those companies, when those institutions get margin called they are gon na, have to buy back.

The amc shares causing amc to run to the moon. It's obviously going to take say one to three days, for these margin calls to actually kick in and be enacted and for the dtcc to come in and sweep up all of these companies and do the margin calls and therefore, i think in say three or four Days, that's when we'll start seeing amc go back up because the shorts are gon na have to cover their positions. Don't forget these institutions that are shorting amc, don't just have their entire 100 capital locked up in the amc. Short most of their capital is invested long into companies like apple amazon, tesla, netflix, microsoft and others like that, and it's only a smaller portion of their short in amc.

Therefore, these companies, even like citadel, are still likely to be liquidated because most of their capital is obviously tied up in amazon and microsoft. When those drop and citadel get liquidated, they will have to buy back their amc. So i wouldn't worry too much guys be sure to. Let me know down in the comments below what you think is going to happen to the debt ceiling and what you think is going to happen to those high ranking officials.

Will they have to settle their shares now and most likely buy them back in 6 to 12 months? And if you haven't already be sure to sign up to moomoo, to get those free stocks and block five to get some free, bitcoin linked in the description below and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and bring that notification bell, because that way, you'll be alerted. When i upload a new video cheers.