By Taki, Gold Silver Worlds:
The flood of news about the recent US government shutdown and the debt ceiling triggered a discussion between Claudio Grass from Global Gold and Pater Tenebrarum from Acting-Man. The consensus between both was that most news items and analysis miss some key points. In some cases, the consequences of the worst case scenario are overestimated (resulting in doomsday expectations), while in others the seriousness of the debt “ceiling” has been overestimated. Besides, the potential outcomes in different scenarios after the events remain rather underexposed. These observations led to a thorough analysis, but one from an Austrian perspective, written by Pater Tenebrarum. This is a must read for physical gold investors.
Anyway, the president and his party (who naturally wish to see the debt ceiling increased sans conditions, i.e., they want to be free to continue to spend with both hands) have decided it is time to play the ‘default scare card’. We should perhaps point out here that a ‘ceiling’ that keeps getting raised is not a ‘ceiling’ at all, so one wonders why it was created in the first place.
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