The debt ceiling debate in Washington has been widely discussed but so far, few investors are truly worried.
Most believe that when the deadline arrives, Congress and the White House will reach an agreement—even if it’s to kick the can down the road. As of now, Treasury Sec. Janet Yellen has set the deadline as June 1. There are still a few weeks left, and if history is any indication, no resolution is likely to be reached until the eleventh hour.
So far, institutional investors have not entirely balked at buying new issue U.S. Treasury bills. During the May 11 Treasury auction, four-week T-bills drew an annualized bond yield of 5.723 percent, a high but not exorbitant interest rate for bonds expiring on June 13. The eight-week T-bills were sold with an annualized yield of 4.793 percent by contrast.
Usually, longer duration paper will have higher yield. But this recent disconnect, where the four-week bills cost more than the either-week bills, reflects some concern that the June 13 T-bills won’t be paid on time while the July 11 paper will. This assumes a new debt deal will be in place by July. But even recognizing that, the 5.723 percent yield is no indication that any catastrophic debt default event is expected to pass.
What should investors do if there is indeed a debt default, or if the debt ceiling fight gets ugly and no deal is in sight?
Enter gold. Gold has approached its record high in recent weeks without much fanfare. That’s an impressive feat given that gold pays no yield and bond yields remain very high. The Gold spot price has climbed around 10 percent year to date through May 12.
There have been a few causes for gold’s recent rise. Global central banks bought 228 metric tons of gold during the first quarter of 2023, according to the World Gold Council. That’s after they collectively added 1,136 metric tons in 2022, a record year. Part of this demand has been driven by certain countries moving away from the U.S. dollar for global trade and potentially establishing a new common settlement currency.
Gold had a previous extraordinary run during the 1970s. President Richard Nixon ended the Bretton Woods system where the dollar converted into gold (at $35 per ounce) in 1971. Gold then eclipsed $850 by January 1980—a 33 fold increase. Gold served as an effective inflation hedge during a period of high inflation during the 1970s, when inflation averaged nearly 7 percent during the decade and culminated at 14 percent by 1980.
Silver, which typically outperforms gold in a bull market, increased by 7 percent to $25.01 year-to-date to May 12. Silver grew from $3 an ounce in the early 2000s and exploded to almost $50 in 2011. At around $25 per ounce today, it remains to be seen how silver will track gold and inflation going forward.
What else is in play?
Currently, the Swiss franc has proven itself to be the strongest currency and an FX haven in a volatile year for global foreign exchange market. During the last twelve months, the CHF gained more than 11 percent against the USD, while notching a four-decade high against its traditional currency haven competitor, the Japanese yen, by early May.
Global currency traders have been betting that the Bank of Japan will keep its ultra-loose monetary policy, which will keep the yen weak against a basket of global currencies. The Swiss National Bank, in the meantime, began hiking rates last year.
But is there value in holding Treasury bills or bonds?
Many investors say yes, despite the risk that America may not pay its bills on time.
Former PIMCO chief investment officer Bill Gross recently advised clients to take advantage of the one percent of extra annual yield on the shorter term T-bills despite default risk. The assumption is that a deal will definitely be reached even if the U.S. government can’t pay its obligations for a short period of time.
Article cross-posted from our premium news partners at The Epoch Times. Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.