“Rich father, poor father“Author Robert Kiyosaki has compared the ongoing deadlock on the debt ceiling to the Japanese kabuki Theater while saying the whole thing is “a bad comedy”.
Kabuki is a form of theater that combines dramatic performances and traditional dance. Kiyosaki could be referring to this drama when he compared the theater to the debt limit impasse given how politicians are bringing the issue to the public. With only a few days left until the X-Date, when the government is likely to run out of ways to fund itself in early June, both negotiating parties continue to use elaborate words like “progress” and “agreement” without actually having one to reach consensus.
Also read: How to Buy Bitcoin (BTC)
Despite initial optimism, even Wall Street showed signs of distrust as major indices continued their downward trend for the second day in a row. The SPDR S&P 500 ETF Trust SPY closed 0.72% lower on Wednesday during the Invesco QQQ Trust Series 1 QQQ 0.51% lost.
The bond market has also signaled its frustration at the ongoing standoff. Government bond yields maturing June 1st and 6th peaked 7% at times on Wednesdaywhich is nearly 4 percentage points above the yields of instruments maturing on May 30th.
And as if that wasn’t enough, rating agency Fitch gave the country an AAA rating on Negative Watch.
The coming days will be crucial for financial markets around the world. Although a majority of investors remain broadly optimistic about a solution, the possibility of a default cannot be completely ruled out as both negotiating sides have demonstrated their inability to reach consensus day after day.
Kiyosaki’s opinion: In addition to his criticism of US finances, Kiyosaki continued to make his bullish case for gold, silver and more Bitcoin BTC/USD. Although spot gold has slipped below $2,000 an ounce in recent weeks, its safe haven status is still a major draw for investors, many of whom…
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