The mere prospect of uncertainty about debt repayments is going to drive precious metals sharply higher.
There is currently a tacit agreement between East and West to keep the dollar’s reserve status unchallenged in exchange for keeping the price of Gold suppressed. It works to the advantage of both sides. China gets the Gold, and the West get to keep their welfare states.
But the prospect of debt default threatens this cosy and quasi-stable arrangement. China’s best way to enforce the payment of these debts would be to increase their rate of precious metals purchases over and above today’s already immense level. Enough to threaten a metal supply failure.
If I’m right in my guess we will see the price of Gold suddenly spike up to near $1415, then down again/flat again when the payments are assured. Or up to $5000+ if they are not.
You've bought the BS. Revenues to the FedGov™ comes in everyday. RAISING THE DEBT CEILING HAS NOTHING TO DO WITH PAYING INTEREST ON THE DEBT AND DEBT INSTRUMENTS.
You are really dangerous always spreading lies and BS.