The clock ticks. Already on Tuesday of the next week the USA and with it the biggest national economy of the world, could be insolvent because themselves both big parties block mutually. Nevertheless, according to the images ripe for theatre of the last weeks is to be assumed from the fact that the poker will stretch between democrat and Republicans really up to the last minute. Actually, it concerns by the rise of the debt border only a purely administrative act. Up to now most market participants had probably assumed from the fact that the politicians will agree in Washington still at the last minute. Then one would probably say „business as usual“ and the markets would go over again to the agenda, provided that one can say this in these times. Some calculations recently assume, by the way, from the fact that the state bankruptcy of the USA not already in the second, but possibly threatens only 15th of August. This changes in the basic problem, admittedly, nothing.
A bankruptcy would have unpredictable results.
What would happen with a bankruptcy in US?
Then the US administration could not pay the management any more, erase no pensions and probably also no state loans. The rating agencies would downgrade the credit standing of the USA. The results would be unpredictable. Is certain that the interest costs would clearly rise for the USA.
The US economic situation would probably also break, the consumption. In the financial markets it would probably come to the trust crisis. Of course gold and precious metals would profit as a sure harbour. But also in the foreign exchange market there might be other movements. Then above all the dollar might stand as a loser there. However, for the dollar it could go downhill so or so further. Thus the rating agencies might also downgrade the USA still with an arrangement in the debt quarrel at the last minute, because a load-bearing draught to the debt dismantling is not by view. For the dollar tumultuous times are to be expected.
Tip:Place on devaluation of the dollar
Hence, in spite of the problems in the euro country a devaluation of the US dollar is likely. With an EUR/USD of Long-lever certificate investors can position themselves accordingly.
So now its time to invest in Euro and let the US Dollar falls, also Moodys warns the US.