This week in capitalism, we'll talk about the debt ceiling.

We'll talk about the latest trillion dollar company, and we'll talk about the stocks and the companies that I'm watching right now.

And we'll talk about how all this affects your business.

Let's talk about the news that affects you, your money, and your business. Let's go.

So we have to talk about the debt ceiling. If you're a normal American, this meant nothing to you,

and you will live longer that way. I'm jealous of you. But if you're an economics nerd or a political junkie like I am, then this was the most

fascinating theater in the whole world. And this actually does matter and does impact your

business. Here's why. The U.S. is kind of stuck between Iraq and a hard place. We have a lot

of inflation right now. This has impacted all of us. and it's actually impacted a lot of physical product sellers,

especially those of you who sell on Amazon.com.

And because there's a lot of inflation, there's talk about where this inflation comes from.

And inflation comes from having more money in the system going to a small number of goods or a limited number of goods.

Hopefully you know that already.

Well, most of the noise about inflation comes as a result of discussions around the Federal Reserve's interest rates.

If you have low interest rates, you have lower borrowing costs.

So there's more money in the system and it's flowing to some assets

like houses and food and stocks. And so you see a big boom in the beginning of an inflationary run.

Well, we still have a lot of inflation, but interest rates are higher now. And there's another

source of inflation that we don't like to talk about. It comes

from government spending. When governments run into debt, they have to get the money from the

Federal Reserve. That money gets put into the system and we have inflation. So we have competing

forces right now. We're trying to stave off inflation, but we're also trying to avoid a recession.

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