Let's step back and ignore what the market is telling you and also put aside our theories for a second and think: why on Earth would the US all of a sudden not be able to tax its citizens and pay interest on its debt? That is the fundamental question. We have a powerful military to protect us, we have one of the best economies in the world and we have the best legal system in the world. There are no rational or logical reasons to think that the US is on the decline or the dollar is doomed or anything close to that. And looking at interest rates and FX strength you can see the world does agree with that statement.
I think this is were it becomes interesting.
Agree that it becomes interesting. But not in the way that most people think it does. So, let's hear it let's hear the scenario that is based on facts today that would lead to one of those things falling apart. And then try to tell yourself that you are doing anything but trying to wildly predict the future in opposition of hundreds of years of precedence, the rule of law and the will of 300 million + people. We're not soothsayers or wizards who can make predictions about the future. Sure, anything can happen tomorrow. A comet could be discovered that is going to hit us. But consider this - in that case we are all screwed no matter what - this is for all doomsday scenarios. If you are trying to predict something less severe just realize that you are really reaching. Being protected from negative risks is one thing, but selling your home to bet that the world is ending or whatever is something else altogether.
Do you see Keynes as a God or just below the level of deity status?
I don't know what you are talking about. Please address one of the points I made directly so that I can reply instead of posting vague, too-cool-to-elaborate-comments.