Default by Printing Press

You declared you would be three inches taller
You only became what we made you
Thought you were chasing a destiny calling
You only earned what we gave you
--The Who

For once former Fed chair Alan Greenspan is correct. If default is defined as not paying back a debt obligation, then the US would never default as long as it runs the monetary printing press.

But if the US does print up cash to pay back debt, then that is also a form of default, is it not? After all, creditors are getting devalued dollars in payment.

Creditors will surely respond by dramatically increasing the cost of borrowing, or perhaps by cutting off future lending entirely.

Meanwhile, people scratch their heads in amazement as gold continues to mark record highs...

position in gold, USD