AgreeWith some of the previous posts about where we are and why, and where we are headed. Crazy Times and Strato have pretty well nailed it when describing the why
and hows of the mess we are in.
The GOP always gets villified over pushing the debt ceiling to the cliff edge but really they are trying to send a message that the current course of overspending each and
every year is unsustainable. The next shoe to drop after the debt ceiling was raised
is the gov't having to go to market with a 1 trillion Treasury offering. That is the size
needed to keep things going. That is going to have real consequences like a rise
in interest rates and a drying up of liquidity.
Unfortunately for average joes and probably some wealthier joes who are more exposed to debt, there will be pain. That said, gold should do well in this environment. The paper game the gov't and gov't backed institutions play to hold
down gold will get broken IMO. The suppression tactics can only go on for so long
and that is fast coming to an end. The size of the debt and deficit spending has
reached the point where the consequences are beyond gov't ability to control.