End-of-April Government Shutdown Might Impact Economy and Personal Investments Immediately

End-of-April Government Shutdown Might Impact Economy and Personal Investments Immediately

It’s not new knowledge that U.S. debt management is somewhat out of control, but amid so many urgent economic and geo-political stories, investors might not realize that the U.S. debt ceiling suspension expired as of March 16. With the clock — and the dollars — ticking away by the minute, Congress doesn’t have a lot of time to act to head off a possibly disastrous economic tidal wave.

The deadline for action is April 28, which coincides with President Trump’s 100th day in office. While it’s tempting to think the administration has a save-the-day plan to unveil on the big day, it’s the legislature that must pass any measure to prevent government shutdown or a possible downgrade to the U.S. credit rating.

It’s not the first time Congress has been in such a position, but the situation is a bit more urgent given certain facts. First, following Easter break, legislators only have four days to work out deals and pass approval of a spending package. One side of the aisle has made promises to vote down a bill that defunds certain agencies, while some on the other side are adamant that defunding occur. Finally, any new package passed by the deadline will only be in place until Sept. 30 — a short reprieve, which might not have a fully positive market impact.

What happens if the spending plan isn’t passed?

The deck seems stacked against the spending plan, and it wouldn’t surprise most people if Congress failed to reach an agreement. If that happens, waves could begin immediately in the economy, and those waves could swamp certain retirement accounts and savings.

Even if the government is able to get it together enough to pass an economy-saving measure, the fact that it has come to this is an illustration of the tight-rope act the U.S. is walking. It’s a fall on either side, and any net is an illusion.

Protecting your retirement savings or investments

It’s exactly this type of issue that is driving so many people to invest in foundational elements such as precious metals. Assets with intrinsic value outside of the currency of the nation or volatility of the market let you safeguard your retirement in the face of frightening economic possibilities.

It’s not too late to act on the promise of gold and silver. Take a moment now, before Congress’s actions or lack of actions causes ripples to start, and find out more about how gold can create stability in your portfolio.

 

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