The U.S. Won’t Default On $39 Trillion In Debt: Why Financial Repression Is Coming And Gold Is The Only Hedge

The U.S. is unlikely to default on its $39 trillion debt because it can continue issuing debt in its own currency, making financial repression a more likely strategy for reducing the real value of its obligations over time. By keeping interest rates below the rate of inflation, policymakers could gradually erode the purchasing power of cash and fixed-income investments, leading many investors to view gold as one of the strongest long-term hedges against inflation, currency devaluation, and government debt.