As the streets continue to fill with blood, the important question on everyone’s minds is is the apocalypse scheduled for Oct 17 when the US is expected to hit its debt ceiling? Because the answer is a strong maybe, I felt compelled to post this week.
Recall what happened last time the US almost breached the debt ceiling back in the summer of 2011, the resulting downgrade from S&P was able to penetrate the shroom-induced fog that followed two topless hippies on the beaches of Vancouver.
Three months after that incident, I posited that “The US dollar’s long-term viability as a reserve currency is threatened, I believe, in part because of that nation’s legislative branch’s new found propensity to play around with the executive’s ability to raise taxes (#1 on the list of answers to why the US deserved to lose its triple-A status).”
Even I didn’t imagine that we’d find ourselves in today’s dire straits. I thought everyone took that as a warning sign to not engage in shenanigans. Clearly, the opposite has happened. What would happen if the US actually defaulted? Catastrophe, in the short, medium and possibly long term.
You have been warned.