The 2023 debt ceiling showdown is negatively impacting America‘s image (and perhaps influence) abroad. What’s more, a contraction in the money supply points to an impending recession for the country…

Welcome to another Pinnacle Pod, where we venture deep into the heart of the high-stakes financial battlefield that is shaping the destiny of the global economy. The United States, once a towering economic force, finds itself on the ropes, weighed down by endless deficit spending and political gridlock.

In this episode, we shine a spotlight on the ‘theatrical’ 2023 debt ceiling showdown, which has sent shockwaves across the globe, leaving America’s image abroad teetering on the edge.

Money supply (M2) contracted at about 4% last quarter, the most on record. As a result, Aaron Hoddinott predicts that asset depreciation is the next logical outcome due to the ongoing tightening of credit amidst a higher interest rate environment.

U.S. on the Ropes as Debt Soars

Endless deficit spending has the U.S. debt-to-GDP ratio extremely high, reaching 129% in 2022. If U.S. hegemony is indeed declining, economic and geopolitical threats from abroad must be taken more seriously by American leadership.

In the pod, Alexander Smith predicts a period of deflation as a recession looms in the U.S. If the U.S. dollar continues to weaken, it could provide an opening for China, and potentially the yuan to gain significant market share in global trade…

China is attempting to garner market share for the yuan, and numerous countries are applying to enter the BRICS. Will the once mighty U.S. dollar continue to falter, offering China an unexpected advantage?

We hope you enjoy the pod from historic Mexico City.

Thanks for tuning in!