"We're probably going to see a slowing down of the economy, a little contraction of credit. So receipts to the government — those cash flows — are probably going to slow," he said. in January, and lawmakers have been deadlocked on raising it. Since then, the Treasury Department has used"extraordinary measures" to continue servicing US debt payments.
Gardner estimated the debt-ceiling deadline would move up by days or weeks rather than months. But the narrower timeframe is still enough to raise risks as lawmakers take on both the banking crisis and debt ceiling later this year. In addition, any legislation to address the banking crisis could also be attached to a bill to lift the debt ceiling, Gardner added, further complicating efforts to avoid a historic default.
"It's very hard to predict, but what you can predict is that lawmakers are going to look at that debt-ceiling bill as the way to get their agenda through," he said.
The federalreserve has undermined the USA banking system because of their overreaction to modest levels of inflation They were trying to force a few million people out of work, but instead fundamentally damaged the banking system 5% to 6% inflation isn't 'high', it's 'modest'