US “Shutdown” just noise before the Debt Ceiling Storm
Forget all the noise on the spending bill induced shutdown. The real issue is come 17 October the US runs out of cash and is in default on its debt if it doesn’t raise its debt ceiling from $16.7trillion. That is, to be honest, unlikely but pushing it to the brink like last time saw a credit rating downgrade for the US and gold reaching its all time high. Moreover this just reinforces the bigger, broader issue of global debt. There’s lots of quotes around but one must listen to those of note and when the head of the worlds largest private equity company Blackstone says the following 4 days ago you should take enormous comfort in being in gold and silver:
"We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven't seen in my career in private equity."
- Joseph Baratta, Global Head of Private Equity at the Blackstone Group