(Thank you DebTarHeelGirl for posting at OOMF)
I have been talking to people all evening about the possibilities of a US default and what ramifications it will have on the RV. I talked to a pretty credible source (he has the right title in the right business) that says that the US WILL DEFAULT and our credit rating will drop causing the US dollar to de-value. If that happens, what happens to the RV ? .......... Nothing .... it still goes through and the dinar value against the USD will be huge! Today the Great British Pound went up to $ 1.64 to the USD. which makes the Dinar, if it comes out at $ 5.25 to the British Pound = $ 8.61 USD. Therefore, if you purchased1,000,000 dinar at say $ 1,100.00 you would see a value rise to $8,610,000 for One million dinar. After a default, you could see the USD go down in value by 20% which would make the GBP 1.96 to the USD which would make that same million dinar worth $10,290,000.
So, I guess if you were self serving, you would say "well, the dollar went down, but I have millions of them, so it balanced out for me." Unfortunately, 99.5% of the USA do not have dinar. Now folks, before you stick your head in the oven, let me tell you that I talked to several other very good sources today and tonight that absolutely say that the deal has been made in secret and that the time they are pretending to talk about the debt ceiling, they are actually working out the tax package for Dinar Holders (which they cannot say it is especially for us, because that would be illegal) but when the day is done, that is who they are targeting.
After balancing all of the people I have talked to tonight, I have come to the conclusion that President Obama, the Senate, the House would be committing political suicide by defaulting and sending this country into skyrocketing interest rates, severe recessional issues and Global shame. So IMO, the Theater Show that is going on will come out to be just fine and the RV should be seen by the end of the week, no later than Saturday night or Sunday morning.
I am not a date or rate guy usually, but I do feel that the buzz you are hearing about the rate being higher than we thought is accurate as the IMF does not want an artificial rate to come out and then a major rise in dinar to happen shortly after and we all know that Shabibi said tot he UN that he could justify $10 - $ 14 back in February.