There are rumors about USD default as soon as this administration leaves the post. I do not know if it will become a reality, for now it is just plausible scenario.
Assuming this scenario would be true, most people will be doomed, while the national debts will be forfeited. Not bad thing for a long run but sad for the baby boomers for they will have to continue working for rest their life. Chaos is ensured and riot is likely.
But what will be exchange rate of of old currency and new currency? How silver and gold play its role?
This is a hypothetical scenario:
New Currency, for the convenience to be consistant with rumors, we call it Amero, would likely be 10 cents to the old USD. This is based on the national debt load the country can handle without severe burden. Say 10 trillion becomes 1 trillion, not too bad.
If one had 100k IRA, over night it will become 10k and wages would follow the same ratio.
The silver would likely equal to $10 Amero and gold, using historic silver to gold 15:1, it would equal to $150. Thus silver's real price will jump from current USD$10 to USD$100 and gold will jump from current USD$700 to USD$1500, not some thing fabulous.
A stablized economical development period could then be realized. Other currencies may rise to be the other form of reserve currency though. Stocks will be great buy then since their price will collapse in the process.
Above are hypothetically composed. It has no bases or facts. It is only for the entertainment of minds.
