$12 TRILLION U.S. DEFAULT RISK – DOLLAR DECLINE, GOLD TO RISE AS HISTORY REPEATS
OCTOBER 8, 2013
The October 17 deadline to raise the $16.7 trillion debt limit is approaching fast and concerns about an unprecedented default have been expressed by well known and politically connected investors including Warren Buffett. A default would be a global financial disaster of a scale even bigger than that of the Lehman Brothers collapse and subsequent financial and economic crises.
The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on September 15, 2008.
Some fear that it would be an economic calamity like none the world has ever seen and the likes of Buffett have warned that going over the edge would be catastrophic.