America’s Government default gives out a reaction on Gold price
Although the gold price is off its recent lows, it is still below $1,900, and there has been little reaction to Bank of America’s assertions that it is ready for the possibility of the United States government defaulting on its financial commitments.
A default is an uncomfortable possibility, according to Brian Moynihan, CEO of the second-largest bank in the United States, in an interview with CNN.
In the interview, he stated, “You hope it doesn’t happen, but hope is not a plan – so you prepare for it.”
The remarks were made as the US exceeded its debt ceiling last month.
The U.S. Treasury has been paying its obligations through exceptional means since January 19.
Congress has been forewarned by Treasury Secretary Janet Yellen that these extraordinary measures may expire by June.