Asset Managers, Industry Aggressively Snapping Up Silver

June 06, 2023

by Mike Gleason Silver Seek

After months of political melodrama, Congress finally did what it always does in the end — and that is to authorize more deficit spending. On Thursday night, the U.S. Senate approved the deal hashed out by Joe Biden and Kevin McCarthy to raise the debt ceiling through 2024.

Holders of Treasury securities may feel like breathing a sigh of relief knowing that the government won’t default. But bondholders continue to subject themselves to interest rate risk and inflation risk.

Now that the U.S. Treasury has essentially unlimited borrowing authority again, there’s a very good chance that it will be used to the detriment of the Federal Reserve note dollar’s purchasing power.