Ken Griffin: Volatility Will Spur Debt Limit Compromise

The video discusses the lack of common ground between political parties, emphasizing that a compromise is unlikely until market volatility forces action. It explains the potential consequences of a U.S. debt default, including increased interest rates and economic costs. The speaker highlights the importance of addressing the debt ceiling to avoid severe financial repercussions.

What does the speaker suggest might be necessary to force a compromise between the two political parties?

• A change in leadership

• Market volatility

• International pressure

• Public protests

According to the speaker, what is a recurring pattern in the budget process?

• Tax reductions

• Permanent solutions

• Increased spending

• Temporary compromises

What does the speaker predict will happen if the debt ceiling becomes an event?

• A compromise will be reached

• Interest rates will decrease

• The government will shut down

• The economy will boom

What is the potential consequence of defaulting on national debt, as mentioned by the speaker?

• Decreased government spending

• Lower interest rates

• Severe economic impact

• Increased employment

How much of the GDP would be spent on servicing debt if interest rates rise, according to the speaker?

• 10%

• 8%

• 6 2/3%

• 5%