A U.S. Default Seen as Catastrophe Dwarfing Lehman
I say print 20 trillion dollars, pay the debt and go on.
What do you think?
It also would teach our politicians they can do whatever the hell they want. We need to balance the budget and start using sound economic policies like "Hey, maybe we shouldn't spend more than our income."
What would you suggest paying off the current 17 trillion dollars debt? Taxes, sell off, privatization, what?
Probably a lot of everything, except printing. Increasing the money supply without a proportional increase in goods and services will cause a devaluation of the dollar, which ****s every single one of us. As it stands, the fed is inflating away 2-4% of your savings a year, which with compound interest REALLY works against you. Meaning you have to average 2-4% a year on an investment just to break even. Considering the rates for CD's right now are like 1%, it's a sham.What would you suggest paying off the current 17 trillion dollars debt? Taxes, sell off, privatization, what?
Sounds good, but those new $100 dollar bills are still the equivalent of negotiable checks. We are going to pay now or pay later or perhaps, default later. After all, the Federal Reserve Corporation is a Corporation and can file bankruptcy. I think the ripple effects would be more comparable to tidal wave effects worldwide, especially as regards OIL. Bought and sold in US Dollars and we have an agreement with Saudi Arabia to keep it that way. You back your fiat money with gold, silver, assets or military might.A U.S. Default Seen as Catastrophe Dwarfing LehmanI say print 20 trillion dollars, pay the debt and go on.What do you think?
Pfft......what do you know?No one is asking for the whole 17 trillion right now. What we have to do is pay the current expenses of government. Defaulting on current bills would devalue the dollar, increase the interest on existing debt, and put the stock market into a dive that would make 2008 look like a boom year.
Surely, not even the current Congress is that stupid, is it?
Is it?... oh, I hope not.
Pfft......what do you know?
Nothing I tell you!
You need to to get learned by a cow doctor!
“I think, personally, it would bring stability to the world markets,”
Should the USA default?
Increasing the money supply without a proportional increase in goods and services will cause a devaluation of the dollar...
How much can we get for Puerto Rico, Guam and the US Virgin Islands? If Mexico had any money these days we could sell them SoCal. :mrgreen:
Not really.The USA has been exporting dollars for decades.
.....Seriously? You really think we've been handing out 20 trillion?
The US government has been intentionally inflating our currency for almost a hundred years. Are you denying that fact?
The markets would react very wildly to such a decision and the value of the dollar would plummet, that's not even taking into account the actual devaluation by an increase in the money supply.
A U.S. Default Seen as Catastrophe Dwarfing Lehman
I say print 20 trillion dollars, pay the debt and go on.
What do you think?
What would you suggest paying off the current 17 trillion dollars debt? Taxes, sell off, privatization, what?
Letting the dollar plummet will increase U.S exports. When the U.S. has a weak currency, this means foreigners get more U.S. goods cheaper. It also will create jobs. A few years ago when the dollar was very weak, European car makers were scrambling to open plants and move operations to the US, because having their costs based in Euros, but selling a product to the US market in dollars, was killing them. They wanted to move some manufacturing to the US so as to have costs based in dollars, so they could then feed the US market, but also export from the US to other countries.
Personally I'd be for a constitutional amendment saying that if congress doesn't stay under budget for a fiscal year they all get recalled.
You back your fiat money with gold, silver, assets or military might.
It's a global market, haas. You're trying to inflate people into poverty. Name one country that has a really weak currency but is really prosperous. Go ahead I'll wait.
Mexico perhaps?
I'm just explaining that having a weak currency isn't always a bad thing. A default may affect the economy in other ways, but a devalued dollar is not a big deal.
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