• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

You Could Lose Everything Very Soon

rhinefire

DP Veteran
Joined
May 3, 2007
Messages
13,225
Reaction score
5,083
Gender
Undisclosed
Political Leaning
Independent
If we default on our loans we will not be able to borrow money and you stand a chance to take a huge hit in your financial portfolio, like 50% in a week. Once the panic starts it will dwarf 1929. Keep in mind in 29 you had to go through a broker to sell, today you hit "SELL" on your laptop and the world tanks in one hour!!!!
 
Absolute nonsense. The sky is falling, the sky is falling. The only effects of default, besides the political, is that our credit ratings will be downgraded and the insane credit card we're running right now as a nation will cost us more in interest in the future.
 

There there Chicken Little.......
 
clownboy said:
The only effects of default, besides the political, is that our credit ratings will be downgraded and the insane credit card we're running right now as a nation will cost us more in interest in the future.
Click to expand...

That's it?

What are your qualifications for making this prediction?
 

and we stand to lose our status as global reserve currency. between that and the interest, defaulting could amount to the biggest effective tax increase in modern times.
 
I doubt that we will truly "default" on our loans. At worst, we'll make a late payment. Sometimes my tenants tell me they have problems and ask to pay their rent late. I allow this because I am confident I will be paid.

The USG is not permanently closed.
 
soot said:
That's it?

What are your qualifications for making this prediction?
Click to expand...

What are yours for endorsing Chicken Little pronouncements of doom?
 

Well, while bond yields are up gold hasn't taken off yet so I don't see panic setting in quite yet.
 
this thread should be moved to the conspiracy section

to the OP, convert yor assets to gold and go bury it
you will sleep better

for the rest of you
do what you have always done
 
clownboy said:
What are yours for endorsing Chicken Little pronouncements of doom?
Click to expand...

I didn't endorse anyone or anything.

I asked you two questions about your comments without making any reference at all to what the OP said.

So I'll ask again:

We fail to raise our borrowing limit and consequently default on our debt, do you stand behind your comments that the ONLY consequences to that are a downgrade in our credit rating and a long-term increase in the interest rate on that debt?

What are your qualifications for making such a claim?

I mean, think back to July/August 2011.

Stock prices fell 11% inside of two weeks while Congress fiddled around over the debt limit culminating in a 5% plunge on Aug. 4 two days after Congress had actually approved raising the debt ceiling.

I don't think the stock market would lose a full half of it's value, as the OP claims (in what I consider to be alarmist and exaggerated fashion) but I think 25% to 35% is completely reasonable to expect if we so much as ask for a couple day grace period, never mind full-fledged default.

That might not really mean anything to you, but it's certainly not "nothing".
 
Last edited:
A default will come eventually if our government shutdown is any indication, but people should not be so arrogant and self-assured that they know how such a default would play out. We are already losing major face as a world peacekeeper because of our foreign policy of the past 15 years or so, but if we default and our currency becomes second rate then we will be doing ourselves a double disservice.

People don't realize just how good we've had it the past 40-50 years or so. We've been sucking the world dry to pay for our luxuries. It's about to end, along with our vibrant middle class. When it does, it's not going to matter which party you think is right, you're going to suffer.

Oh well, there's not much point in talking about it. Talk is cheap. When it happens, people will see the reality. Until then, let the partisan bitch fest continue!
 

And speculators made barrels full of cash, the FOREX folks were raining money when that happened. When a nation defaults on it's loans, quite simply the banks adjust and continue on. Now, how long did it take for the stock market to reach new heights after that plunge?

I'm sure there are other consequences, my main point was to rebut the over the top and silly doom prediction of the OP.
 
clownboy said:
I'm sure there are other consequences, my main point was to rebut the over the top and silly doom prediction of the OP.
Click to expand...

That's fair enough, and I agree that it could have used more than a little rebutting.

But I hope you'll agree that a response tantamount to, "Mehhhh, NOTHING will happen", is taking it a good deal too far in the other direction.

I asked you those questions because I don't recognize you.

I didn't know whether to classify you among DP's conservative idiotsphere (and I think your initial response could lend itself to such classification) or what.

So rather than just start calling you names I figured I'd ask, "Hey, WTF are you, and did you REALLY mean that?"

For what it's worth, I don't think you're an idiot. I think your initial brevity was more a rush to get off a smartass rebuke than anything else.
 
Helix said:
and we stand to lose our status as global reserve currency. between that and the interest, defaulting could amount to the biggest effective tax increase in modern times.
Click to expand...

What currency could realistically become the reserve currency???
 
AlabamaPaul said:
There is not enough gold on the planet to finance today's economy...
Click to expand...

did you quote the wrong post or something? i'm not advocating the gold standard.
 

Well, I think your characterization of my post is off as mine was off about yours. But that can happen when you put people in categories that you've built. I am conservative in some issues, liberal in others, and still some others where my opinion doesn't neatly fit either category. I do know from 60+ years of experience that this too shall pass. I've seen enough government shutdowns to know, historically, they end up being a tempest in a teapot.
 
AlabamaPaul said:
Your link did...
Click to expand...

i'm not a gold bug. i'd fix the problem through a combo of tax increases, targeted cuts, and a complete reworking of our national priorities.
 
AlabamaPaul said:
China's economy would collapse...
Click to expand...

They're in pretty good shape. They've managed to use the last 50 years to buy up and lock down the resources they would need going forward.
 
clownboy said:
They're in pretty good shape. They've managed to use the last 50 years to buy up and lock down the resources they would need going forward.
Click to expand...

If they have no customers, they're toast...
 
You must log in or register to reply here.
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more…