Rafi Farber: A Temporary Debt Ceiling Default Could Collapse the Whole System

Short-term Treasury markets are predicting a temporary debt ceiling breach as the spread between 1M and 3M yields has blown up to the highest level ever this week.

That means short-term money is piling into the most liquid and short-term maturity, a clear sign of panic on the front even of the curve.

And while a temporary debt default is acknowledged as possible, what very few people understand is that even a temporary default of a few days has the power to collapse the entire financial system.

To find out more, click the video now!