A United States Government Default Would Be An Excellent Buying Opportunity

As investors, we do not put together successful investing lives by getting world events to happen that we desire. Rather, we put together successful investing lives by reacting intelligently to the events that do happen.

Although I personally regard it as a low probability event, the upcoming issue that is dominating the global financial newswaves is the prospect of a potential United States government default on its debt.

The real issue there is that the United States will not be able to pay interest rates on its debt to creditors (this means both foreign entities like China’s vast stockpile of US government debt, as well as American corporations and individual investors that held US bonds), and this will conceivably lead to: a (temporary) crash in the United States dollar as it loses its historical credibility to meet its debt obligations in all instances, the dollar loses its status as the … Read the rest of this article!