The debt ceiling issue may be postponed but the real issue is that we don’t make a lot of physical things in the US. It is a service economy in a world where service is commoditized, as well as currently not allowed (due to various COVID restrictions and mandates). Economies that make things will bounce back before ones that are downstream of all that. I know this is an unscientific opinion, but it feels to me like the US economy is a house of cards and luckily, it housed a lot of overpriced assets, and the US Dollar is still the reserve currency of choice to prop it all up.
Well, if the worst comes to the worst, US can always sell its gold reserve. It has like, what, more than double the metric tonnes compared to the second country with the most holdings? We get to enjoy cheaper gold price when that happens!
Quite a spectacular feat considering all the spending.