WoW, and how many widows and orphans would loose their saving if that happened?
Every money market fund in the country would bust the buck.
With the current velocity of money, it would remove at least 2.6 times the amount of the default from the money supply.
Bank reserves would be wiped out, Markets would freeze, and most of the US gold is still held by the government, it's not in circulation. It would be 2008 on steroids.....
All bonds should be thought of as an investment at risk. The money necessary to pay off those bonds doesn't in reality exist, and never has. In order to "pay" them,
other people need to be defrauded anew, thus perpetuating the Ponzi scheme. That's the nature of Ponzi schemes. So defaulting would only be an overdue acknowledgement that our government, in collusion with the banks, has been working a gigantic Ponzi scheme fraud on its investors, just like Madoff. Reality is reality. The longer you try to pretend it's not reality, the greater becomes the crime and degree of victimization when it finally comes crashing down, which it must do eventually, but the sooner the less catastrophic.
