clo,
re: "Many Republican/Tea's, believed even if we didn't raise the debt ceiling we would NOT have defaulted."
Are you claiming they're wrong? If so, you don't know what "default" means.
There's no doubt we will default. EVENTUALLY. The form it will take is not yet apparent. It could be that we'll just refuse to pay our bills. The slimier (and therefore far more likely) method will be that we'll pay the bills with new money, not even backed by this joke known as "debt."
That day is coming. But it's at least a handful of years away UNLESS an accelerant is introduced.
But that's possible.
I've heard speculation that Venezuela's move to claim all of its overseas gold (and nationalize its own gold reserves and mines) could be such an accelerant. If other nations decide to do the same, things would hit the fan soon. Just as a run on banks would reveal that banks don't actually have enough cash, a run on gold by even a few countries could quickly reveal that the gold is not there.
I don't know where it is, but I think it's gone. Sold, or used as backing for some of this debt other countries have nonsensically been buying. I don't think there is NEARLY enough gold in the various storage locations (Ft Knox, Central Banks, etc.) to return it to those who, like Venezuela, rightfully own it.
If other countries see what Venezuela has done and decide that they'd better get their gold back too - while the getting is good - then things will get interesting.
BUY GOLD. Just as they have been in the past, your thoughts on the subject of gold are wrong today. (That said, I'll concede that you may get a crack at it around $1,600/oz in a few months.)
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