The chance the US will default on its debt in a traditional sense is zero. Yes, zero. All of our obligations are in US dollars. Governments that can print their own currencies don’t go through traditional default, they default through the printing press (i.e., by inflation). It will take a few more dollars to buy bread, vodka, potatoes, and cigarettes (I am going authentic there) year after year. The US government will honor its obligations in nominal terms (ignoring inflation), meanwhile defaulting on its debt in real terms (adjusted for inflation).
http://www.cnbc.com/id/44051683 - Unfortunately for those who are not prepared for this - Greenspan is right.
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