With the $14.3 trillion dollar debt ceiling quickly approaching and at a run rate of $4 billion dollars per day, we should hit that ceiling around beginning of April 2011 (assuming that run rate does not accelerate or decelerate). The white house economic advisors chairman Austan Goolsbee said the remarked:
"This is not a game," Goolsbee said on ABC's "This Week." "If we hit the debt ceiling, that's essentially defaulting on our obligations, which is totally unprecedented in American history.
"The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008," Goolsbee said. "I don't see why anybody's talking about playing chicken with the debt ceiling."
If this is indeed true then this would provide a bright future for silver and gold speculators either way as if the debt-ceiling is not raised and we breach it, we default and fiat currency becomes a much bigger problem (ultimately leading to deflation, but with no reputable fiat currency available, gold and silver may become a currency safe haven). If we raise the ceiling, that could mean that we are going to print more and expand the money supply by trillions more creating more inflation.
Republicans are seemingly asking for conditions in spending reduction if the ceiling is approved, but if history has taught us anything, the spending topic will be put to the wayside once this crisis has been averted until we have to raise it again (lets hope that is not the case).
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