The risk of US default is at the highest level in history, threatening global markets with painful losses. For investors, there are a few tools for hedging, most notably gold.
And the precious metal is largely the best choice for people seeking to protect their money when Washington defaults, and according to the latest survey conducted by “Bloomberg” agency, more than half of financial experts indicated that they would buy gold if the US government failed to fulfill its obligations.
What is surprising or ironic is that US Treasury bonds are among the assets that respondents prefer to buy in the event of default, and Bloomberg was surprised by this, given the risks surrounding these bonds, which are likely to cause US defaults. the United States for payment.
In turn, the “Bloomberg” agency confirmed that the holders of these bonds will receive their financial dues in the event of default, and pointed out that investors likened the “Bitcoin” currency to digital gold and considered it a safe haven that could be resorted to.
Last January, the US Treasury notified Congress to start applying “extraordinary measures” as a result of the rise in the debt ceiling, which reached $31.381 trillion.
And US Treasury Secretary Janet Yellen warned that the government will not be able to continue to meet all its obligations, by June 1, 2023, if a decision is not taken on the debt ceiling.
US President Joe Baden is scheduled to meet US House Speaker Kevin McCarthy on Tuesday to discuss the issue of default.
This article was originally published by RT.