US defaulting on its debt
Author: raj
Category: Economics, Finance
It is not ‘unthinkable’ at all ‘that the US may default on its debt’. In actual fact this has already happened.
By virtue of the US$ still being the de-facto world currency, any
overseas entities holding US$ debt have already seen their assets’
values slide versus their own currencies by between a third and a half.
It is not very long ago that the Euro was US80c, now it is close to
double that. This collapse represents the world’s biggest effective
government default in history – a fact that has passed almost unnoticed
in the media.