"Gold price has been all time high in terms of USD.So, The US gold reserve can support more USD to be printed."
How much Gold have they got. I have heard rough estimates around $700bil USD. Their sovereign debt is over $14trillion. The ceiling just got lifted so debt is going to climb. So what is that amount of Gold going to achieve.
Also keep in mind diluting your currency for the purpose of making it worthless to better service your loan is defaulting. In that scenario interest rates are going to have to go up anyway to combat the inflation so the debt liability grows, its a catch 22 situation.
Its a mess on a monumental scale. People can state oh its not that bad, or this or that will save it etc etc, but the truth is its gone to far and the US/Europe are heading into economic Armageddon. They'll keep printing and borrowing which will only put of the inevitable and equate to deeper problems down the track.
People have a false sense of security because of our advancement in the quality of living over the decades. The world has advanced on many levels and people are under this false illusion that what happened in the 30s will never happen again. That somehow protections have been put in place. There is no immunity from the devastating effect of creating/borrowing huge amounts of debt to keep a sick economy ticking along.
Goodluck with trying to persuade yourself otherwise!
