Wall Street Journal: “What If The U.S. Treasury Defaults?”

15 May

The Wall Street Journal joins the chorus:

A financial crisis is surely going to happen as big or bigger than the one we had in 2008 if we continue to behave the way we’re behaving,” says Stanley Druckenmiller, the legendary investor and onetime fund manager for George Soros…

The grave danger he sees is that politicians might give the government authority to borrow beyond the current limit of $14.3 trillion without any conditions to control spending.

One of the world’s most successful money managers, the lanky, sandy-haired Mr. Druckenmiller is so concerned about the government’s ability to pay for its future obligations that he’s willing to accept a temporary delay in the interest payments he’s owed on his U.S. Treasury bonds—if the result is a Washington deal to restrain runaway entitlement costs.

The U.S. Treasury will hit that $14.3 Trillion debt ceiling on Monday.

And says that the U.S. only has until August 2nd to find a way to avoid default.

All together now …

Barnaby Was Right!

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