I was recently listening to a book titled How an economy grows and how it collapses and an interesting (probably unlikely) scenario was discussed. I would be interested about your opinion:
The US as a nation is swimming in debt and a (small/large) portion of it is now finance by other nations like China. Consumption itself is not increasing a country’s GDP (the goods are not produced in the US). Long story short… What would happen to a portfolio of investment in US (based) companies (paying dividend in USD) if the US defaults, or hyperinflation would be in the country? (I know I know unlikely, but they said the same to the housing market)… so just in theory what would happen. What would you do?