PNGMK wrote:this is going to be bad.... I'm thinking domino effect now.... and perhaps a long period of de-stabilisation.
At this stage, you could be right.
The question for the World as a whole is......will a default by the US cause significant problems. In the short term, yes, but I believe in the longer term it will be good for everybody.
Restructure, reform (hopefully) and finally get the country operating more smoothly plus the rest of us wean ourselves off the US' nipple. The EU, Australia, China, S.E. Asia, Japan, Korea, Canada etc. all stepping up and taking a greater responsibility for how everybody operates instead of kowtowing to a nation bankrupt of funds and some would say, democracy.
Having the bulk of our eggs in a US basket is a non-starter if we were to look at it afresh today. It will be painful in the short term but holding cash in multiple currencies and gold should be safer than investing in bricks and concrete. A house, anyway, is for living in.
'When Lewis Hamilton wins a race he has to thank Vodafone whereas in my day I used to chase the crumpet. I know which era I'd rather race in.'
SIR Stirling Moss OBE