https://www.zerohedge.com/markets/are-you-ready-coming-us-government-default
Are You Ready For The Coming US Government Default?
by Tyler Durden
Monday, Nov 07, 2022 – 07:20 AM
Authored by MN Gordon via EconomicPrism.com,
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The vast herd of investors are a deluded crowd. Following the Federal Reserve’s much anticipated 75 basis point rate hike on Wednesday the major stock market indexes jumped upward.
Optimistic investors keyed in on the Federal Open Market Committee (FOMC) statement and, in particular, the remark that the Fed, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments.”
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In other words, this bear market may not bottom out until well into 2025. What’s more, the entire dollar based financial system will likely blow up sometime beforehand.
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But many won’t recognize heavy handed monetary policy as reasons for their disappointment. The erosion of purchasing power can be subtle over long periods. Moreover, the effects of currency debasement policies extend to all corners of the economy.
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Depends upon how you define default. What happens when no one wants to buy US Treasuries?
It’s going to be ugly. As the interest rate goes up, more of the Federal budget should go to interest on the debt. If they don’t cut, then more dollar printing.
A vicious cycle.
Sigh!
But what will be the form of it? Us tin foil hats are trying to guess will they just: “print”, “default on the bonds (i.e., tough <synonym for excrement> you suckers)”, or something involving a FED version of mandatory bitcoin (i.e., cash is recalled just like gold was)?
And, then what will the sheeple do?
—30—
Reinke Faces Life 