Calling the USG default is like calling subprime, the math does NOT work, and it WILL happen, but it can stretch on for a semi long time…until credit gives out, and margin call. It’s not like a 100yr thing though, we can run spreadsheets and see the numbers go wacko fast, we have math support, just no way of placing a year on it. Why would she say 12 months?
Never looked at state debt, but I would assume it’s the same game. States are financially retarded, we all know that. Spending money on pointless stuff, employing idiots who do nothing, etc. They should just sell California to the Chinese, if it’s even worth anything.
PA, she became famous before this for predicting the dividend cuts at several large banks. After she became famous from that, she went in to this claim. She managed money for a few years but closed the fund a year or so ago.