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Today’s Big Story

The US Could Hit the Debt Ceiling Soon

The US is fast approaching its debt ceiling and may reach it faster than previously thought according to Treasury Secretary Janet Yellen. New data on tax receipts suggest that by June 1st, the US could be “unable to continue to satisfy all of the government’s obligations”.

What happens if the debt ceiling is reached?
In short, it will be kryptonite for the economy. An analysis from Moody’s Analytics predicts that if the government stops paying its debt for four months, stock prices could fall by a third, 6 million jobs would be slashed, and a default on US Treasury bonds could lead to a downturn similar to the 2007-2009 Great Recession. Additionally, the default would prevent the government from handing out social security benefits, maintaining national defense, and funding the public health system.

What’s being done to prevent an economic apocalypse?
A House Republican bill that raises the debt limit and cuts government spending was rushed through the House last week. However, it won’t get past the Democratic controlled Senate and if it does, the President said he would veto it. Democrats say they are willing to consider approving a debt limit increase if the spending cuts are removed. See a breakdown of the spending cuts here.

Big Picture:
Both parties are playing hardball in hopes of furthering each of their political interests. However, the US has never reached its debt ceiling in the history of the country. Which suggests an agreement can be met before the country enters into another recession.

Little Stories

Business & Economy

*American Airlines pilots voted to authorize a strike to put pressure on the company to raise pay and improve working conditions. Company officials say they are close to an agreement and flight cancellations heading into the busy summer season are unlikely.

*JP Morgan acquired now defunct First Republic bank in an auction on Sunday night. However, institutional investors - large companies who make significant investments in the stock market - will not receive compensation after the buyout. Common shareholder - little guy investors - also won’t likely be made whole.

World

*Russia launched a second missile attack in three days against Ukraine early Tuesday morning. The rockets damaged infrastructure and wounded 34 people. The Friday attack killed 25.

*Sinaloa Cartel boss ‘El Chapo’ sons charged with smuggling cheap fentanyl into the US. 70,601 Americans died of an overdose from synthetic drugs — primarily fentanyl — in 2021.

US New, Politics, & Government

*The oversight board appointed by Gov. Ron DeSantis is counter suing Disney. “Disney sued us, so we have no choice now but to respond”, Chairman Martin Garcia said. Read our previous write up about the feud here.

*A man suspected of killing 5 neighbors with an assault rifle in Texas on Friday is still evading authorities. Francesco Oropesa allegedly opened fire on the neighbors after one complained that his shooting was keeping their baby awake.

Sports & Entertainment

*Snoop Dogg joins an investor group interested in purchasing the Ottawa Senators of the National Hockey League.

*Hollywood is preparing for a writers strike that could shut down production on most TV shows. Writers are demanding better compensation as large entertainment companies cut their budgets to boost profitability.

Science, Health, & Tech

*Doctors developed an AI tool that can analyze whether abnormal growths found on CT scans are cancerous or not. According to a study, the algorithm performs more efficiently and accurately than current methods.

*AI technology can now read minds after neuroscientists created a decoder that can translate brain signals into a continuous stream of text. It’s the first time that thoughts can be read non-invasively.

Extras

*The guy who ate a $120,000 banana in an art museum says he was just hungry.

*These are the best US states for retirement.

*Naked landlord doesn’t justify lower rent in Germany.