The federal government could default on its debt as soon as July, a new forecast from the Bipartisan Policy Center warns, raising pressure on Congress for action.
The prominent think tank forecast Monday that the so-called “X-Date” would likely arrive between mid-July and early October.
It’s actually difficult to state how bad it would be. People use the United States dollar as a reserve currency because it’s a trusted currency. It generally maintains its value.
It’s in a precarious situation because it’s not backed by anything but the Word of the United States Government. As soon as that government starts to default on loans there’s absolutely nothing propping up the dollar as a reserve currency.
People will start to look for alternatives immediately. Which will absolutely tank the value of the dollar which will lead to more people looking for alternatives which will take the value which will lead to more people looking for alternatives which will tank the value…
Essentially you’re looking at runaway hyperinflation until the value of the dollar reaches somewhere between literally shitting in your hand and a punch directly in the face…
You think the price of eggs are high now? Imagine how high they’re going to be when nobody will accept cash for them, only barter. Literal fucking Pokémon cards are going to be worth more than the dollar very very soon. And the worst part of that statement is it’s barely an exaggeration.
There are so many dollars stored away by countries all over the world primarily because it is a currency accepted nearly everywhere, especially for oil. If this domino falls, the currency will tumble. There are calculations that this would bring the us dollar down to 10 to 15 Euro-cent.