You Could Lose Everything Very Soon

[clownboy]

If they have no customers, they're toast...

That's the thing, they've bought up a percentage of oil reserves around the globe in addition to vital rare materials. Not to mention, they can and have let millions go to subsistence level without missing a step. Heck, during Mao's time they "re-educated" more folks than the US has population now at it's height and virtually cut themselves off from the West.

 

[AlabamaPaul]

That's the thing, they've bought up a percentage of oil reserves around the globe in addition to vital rare materials. Not to mention, they can and have let millions go to subsistence level without missing a step. Heck, during Mao's time they "re-educated" more folks than the US has population now at it's height and virtually cut themselves off from the West.

Again, a country could have all resources, but if there is no market for the output, what do you do with it? The US currently possesses more energy resources than the ME. Also, rare earth minerals are available here, but we're not allowed to mine them...

 

[Helix]

Yeah, but important to note, IF China is doing this by plan, the plan began long, long ago.

i believe that it did.

 

[head of joaquin]

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!!!!

Yeah, it's amazing that the GOP would actually use this vicious self-destructive threat to try to gain political advantage. But that's how batshiiit crazy conservatives have become in the thrall of teabaggery.

 

[head of joaquin]

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.

Exhibit A on why the tea party will drive the country into default. They are that deluded and that nihilistic.

Recall elections, anybody?

 

[head of joaquin]

There is not enough gold on the planet to finance today's economy...

Hey, AP said something correct at long last.

 

[Bob Blaylock]

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!!!!

This almost looks like an attempt to manipulate the market for one's own gains. Sell short or buy put options, then try to start a panic that one hopes will drive the market down.

 

[RDS]

What is there to worry. Right now you are already owned by China.

 

[austrianecon]

What currency could realistically become the reserve currency???

Yuan?

 

[austrianecon]

Yeah, it's amazing that the GOP would actually use this vicious self-destructive threat to try to gain political advantage. But that's how batshiiit crazy conservatives have become in the thrall of teabaggery.

US has already defaulted debt before.

 

[austrianecon]

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!!!!

US has defaulted a couple of times already in it's history. In 1790, 1933, 1971, and 1979. Anytime you change the rules of payment without agreement by Bond holders you default. So in 1790 when Alexander Hamilton argued for State's debts to become Federal debts. Then argued we should restructured the debts. That was a default. In 1933 when FDR, Congress and the Supreme Court changed the rules on how US debt was to be paid back, especially it's WW1 debt which clearly stated the bond holder had a choice on payment, Gold or Money. So when FDR confiscated all gold and banned payments in Gold, that was a default. In 1971 when Nixon and the US refused to pay debt obligations (dollars) to foreign countries in Gold as part of the agreement of the Bretton Woods system, the US defaulted. We can actually trace the demise of semi-income equality to this moment. But we still have 1979 to look at. In the Spring of 1979 (April) Congress refused to raise the debt limit to a poultry $830 billion (yeah, that's a mind blown moment). Treasury failed to pay $120 million in debt and there was a class action lawsuit to get full payment. That "default" as Treasury blamed it on a "glitch" cost the US Tax payer $6 billion in interest payments on the $830 billion in outstanding debt at the time or roughly interest rates rose by .6% due to it.

 

[imagep]

If the guberment is temporarily slimmed down and tax revenues are still coming in, then why would we default?

Seems to me that if we aren't running a deficit then there is no risk of default. I wouldn't think that we would hit that debt limit ceiling with 800 thousand gov workers furloughed.

 

[Slartibartfast]

At some point something bad will happen all these doomsayers will be GENIUSES I TELL YOU, GENIUSES!

 

[austrianecon]

If the guberment is temporarily slimmed down and tax revenues are still coming in, then why would we default?

Seems to me that if we aren't running a deficit then there is no risk of default. I wouldn't think that we would hit that debt limit ceiling with 800 thousand gov workers furloughed.

800,000 Federal workers furloughed is a drop in the bucket which they are gonna be paid anyways after the debt ceiling is raised. It's the other bills that have to be paid. You know things like Social Security, aka Mandatory spending. Shutting down Government for 2 weeks doesn't prevent the US Government from hitting the debt ceiling on Oct 17th. A month pushes it back a week. 2 months will be about 2 weeks. And so on.

What people are gonna find out is those 800,000 aren't really needed and government is bloated. You basically have 30% of the whole Federal workforce who are considered useless when money issues come into play. Maybe they really shouldn't be there in the first place?