Not sure whether I am alone in crying hoarse about the pending US default…but I always get some support from the American media!

One of the biggest players in the American bonds market (perhaps the largest) is as skeptical about the bonds issued by Uncle Sam…

let us take the worst case scenario of the Al Qai-eeda laying its hands on the Paki Nuclear (unclear?) bombs, Germany pulling out of Euro, Greece being pushed out of Euro – perhaps a collapse of Euro?…

well Pimco has added to its puts according to Wall Street Journal….OMG..

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  1. ha! it will be treated like a black swan event – everybody will say ‘this was not expected’….well the real default may not be so visible. The default will be subtle – it will be done by letting inflation rise in US. So we will not ACCEPT that we have been had.

    Subtle defaults are allowed – it is hidden by saying ‘every growing economy will have inflation’ – a brilliant lie by the government owned economists…:-)

    commodities will also suffer initially but rebound quickly…

  2. but the US already defaulted in 1971. if defaulting means not honoring your contract,then the US did so by severing the gold dollar link and refusing to redeem dollars for gold -which was replaced with faith in the govt.

    i dont think the US default is going to be sudden.the chinese have far too much at stake to let that happen.bill gross is a hypocritical fellow (much like buffet i guess).he has now shorted treasuries,but in 2008/2009 he railed against socialism for the rich while simulataneously begging the us govt to buy up all those useless MBSs.

  3. If US default is imminent what should India do to lessen the impact? As a responsible citizen what should I do?
    Only solution I can see is “AUSTERITY”, applicable for both Govt.s and people.
    Very hard pill though.

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