Don't Let the U.S. Debt Default Scare You... Yet.
Democrats and Republics are fiat scumlords. They'll amend, extend and pretend.
If you’re caught-up in the media hype of a default, you’re probably new to investing or caught up in the media spin.
This happens all the time…
When I began my investing career, U.S. national debt was at $9-10T or so back in 2008. Now, it’s over $30T. 300% gain!
If you have one takeaway from this post… you have to understand one thing.
Democrats and Republicans are what I refer to as “fiat scumlords”. They will do anything to get elected, and that includes printing more money. A lot of it.
They’re the ones who SET the debt limit, so why would they let it default? Even if we DID default, who cares? What does it mean?
The U.S. government will amend, extend, and pretend everything is ok.
The US government can just “amend, extend, and pretend” everything is ok, and put the U.S. government back in good standing even if there is a default.
Either way,
They will amend the rules to their advantage (i.e. a default “didn’t” happen on their watch)
They’ll extend the date with which a new default will occur
In the meantime, until the next election, they’ll pretend like the debt isn’t an issue.
Almost everyone in national office in Washington D.C. is a fiat scumlord, who loves to amend, extend and pretend.
The borrower never determines their own default.
I’ve spent my entire professional career as a lender/financier (stocks are just my hobby). And I can tell you, there is not a SINGLE time when the borrower determines if they’re in default. The lender does. And that moment of reckoning is looming large on our horizon, but I highly doubt it’s happening June, 2023. Why?
The U.S. government is the borrower, and they’re in control. Ironic right? Any real default will happen beyond their control. This one is in their control…
And this is why I’m a huge personal fan of Bitcoin. Politicians can just print money with the Fed and manipulate our currency and erode our savings. The system forces you to invest to combat inflation… that’s why assets sky rocket when the fed prints money.
That said - my stock market advice is that you should use this media hype causing the sell off as a time to buy…