Heading Toward Another U.S. Government Default

October 25, 2023

by James Turk GATA.org

The financial position of the federal government of the United States has been gradually deteriorating for decades. It is now rushing headlong to the financial tipping point that will cause it to default on its promises yet again. What kind of default will it be this time?

Will it be like the 1933 default when the federal government reneged on its debt and stopped the deflationary spiral in the dollar caused by the unwinding of the 1920s credit bubble instigated by banks?

Or will the federal government repay its debt by pretending to fulfill its promises with a worthless currency, repeating what occurred in the 1780s with the country’s first currency, the continental?