Tension is mounting over a possible US debt default by June 1st which would shut down essential services unless Congress raises the limit. Though whether it is a piece of to-be-expected political theatre or a genuine threat time will tell.
The US has raised its debt ceiling at least 90 times over the past century and even when a shutdown is threatened, it rarely occurs. If it did come to pass, the salaries of federal and military employees and their pensions would not be paid. National parks and other agencies would shut down. In 2011, the last time the US was seen at serious risk of a default, talks went down to the wire, before a compromise deal was announced hours before the deadline. But that stand-off prompted a downgrade in the US credit rating and sent the stock market plunging, costing the public an estimated $1.3bn in higher borrowing costs that year.
The Republicans view government spending with suspicion as evidence of an out-of-control government. Though debt levels have been declining in the past two years. Moody’s Analytics predicts that in a prolonged stand-off, stock prices would fall by almost a fifth and the economy would contract more than 4%, leading to the loss of more than seven million jobs.
The first thing to note is that Kevin McCarthy, GOP Speaker in Congress since 7th January this year, has a run of failed-plans and disappointments on his Term chart running through from now till late August and repeating again throughout 2024. So he won’t cut it as the mastermind of a grand showdown.
The USA Federal Reserve, 16 November 1914 9am Washington, DC, is certainly confused and panicked with tr Pluto opposition the Neptune now till mid June, and again through 2024. It will face upheavals with a need to change direction from this August as tr Uranus opposes the Sun – and is not coping well with pressures in 2025/26 with tr Neptune square the Saturn Pluto in Cancer.
Joe Biden’s Term chart is heading into troubled waters with the Solar Arc Saturn due to close to the square to the Mars and Uranus over the next few months – which looks like setbacks and agitated disruptions. But that could be caused by all manner of crises.
The USA chart has its final Pluto Return late this September to end of October with the two Aries/Libra Solar Eclipses this year in square to Pluto – the pressure to change is on. But it looks to be facing greater problems in 2024 than this year – as the Solar Arc Saturn moves to conjunct the Mars in mid 2024 and then square the Neptune in 2025.