I will quote the President on this "there is a good chance of default" You have got to listen to this man, he is telling you we will default What doesn't everyone understand?
China is in touch with the world bank and other leading trading nations. here is what the Chinese would like to see.
What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant US dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.
Being a reserve currency allows the US to borrow at low interest rates, as central banks around the world are eager to buy US government debt. “Any country that can finance its expenditures by printing money or selling bonds is essentially getting a free lunch,”
Buying gold and allowing the yuan to be traded freely would weaken the US dollar’s dominance as the international reserve currency. The move would have major implications, making it more expensive for the US government to borrow money and to run perpetual trade and budget deficits
With the US debt piling up as it is into trillions of dollars, financial markets will eventually stop relying on the US dollar as their mode of commerce. This will no doubt paralyse the US economy in the long run when it happens.
The average American will be sent to the restaurant’s kitchen to wash dishes if the dollar loses its status as the world’s reserve currency.