Let’s suppose the absurd happens and we have a hard default. This would require us to ignore that Boehner knows damn well he has enough votes (Democrats plus the moderate conservatives) to pass a clean budget.
What then?
Where do we go? Because I can tell you, if the US treasury is no longer the gold standard of finance, we have bigger problems on our hands than our account values alone.
Let’s say you short this market to zero. What then? What do you plan on buying?
The treasury bill is the blood of global financial transactions, no less so than the dollar. It’s on every continent, in every country, lurking in every market, of the open or black variety.
It’s absolute craziness, I know. And now is most definitely not the moment to leverage.
But when the time comes, do you have the will to dismiss the doubt and go all in?
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A relative willed me $80 in pre 1964 nickels thinking they had junk silver. only a few during wwii had silver. I will put it all in.
It’s only a reserve currency if your
sure it will be honored by everyone. If
that is no longer true think Brazil,
Argentina etc.If serious inflation is what
congress want’s then bob’s your uncle.
cheers
look at things that don’t hit you in the face.natgas up and down. buy old muscle cars,fix,enjoy for few weeks and sell for a double if you buy smart.
Why would the treasury break the law by defaulting and send the world into chaos when they could just break the law and cross the debt ceiling? Better yet have the fed directly fund the treasury and it probably would end up being considered legal.