Horace Greeley famously said:
“Common sense is very uncommon.”
The last few weeks have been an exercise in an excruciatingly low level of common sense. The country is taking this whole default idea very seriously. It only further proves how little the public really knows about the modern monetary system and how misguided the political process has become because of this misunderstanding.
This is visible in real-time in the markets today where silver prices are collapsing and treasuries are rallying on the back of the announcement that Congress is very close to a debt ceiling agreement. It’s never a good idea to datamine using intra-day moves, but it’s clear that some investors were betting on a USA default via silver prices or hesitant to buy treasuries because of this debate: