0ICU812
11-13-2008, 11:10 AM
I have been following some of the predictions of the doom and gloom gold standard guys. Advice is to buy gold and foreign currencies. Thinking is that USA has printed too much money, promised too much and can't pay its debts. So the argument is to buy foreign currency.
However, can anybody speculate what will happen to the foreign currency if/when the USA defaults on its debt obligations? If China holds $3 trillion is US debt, and then it goes bad, what happens to China? Or Japan, or UK?
Are we the smart ones for sticking them with the debt, and then default or we not so smart for running up the debt and trying to pay it back with increased taxes, etc.?
However, can anybody speculate what will happen to the foreign currency if/when the USA defaults on its debt obligations? If China holds $3 trillion is US debt, and then it goes bad, what happens to China? Or Japan, or UK?
Are we the smart ones for sticking them with the debt, and then default or we not so smart for running up the debt and trying to pay it back with increased taxes, etc.?