I’m not sold either way as of yet. Either Deflation, or Inflation. Each is gonna suck, one worse than the other.
I had doubts before, but I’m betting on inflation now. It all depends on how credit was created in the first place that drive the economy. If credit was created to make things, then a default will fuel deflation. Since US economy is 70% so any default is not going to cause much of any deflation at all as theres not enough goods and services to soak up the money in the first place. Any extra money printed WILL ONLY FUEL INFLATION