Will the US Default? ( Archived) (35)

Ain't that funny Conrad...Sach Goldman, CitiCorp, Bof A....all suddenly want a deficit ceiling done and done now.

A little poetry for the approriate for the times.

Get er done the bankers say.
Use Reid's plan any old way.
Come high water or whatever may.
It does not matter were the tax burden lay.

We got ours in the stimuli.
So Obama is our best buddi.
All we need now is more moni
And that new red Ferrari.

The debt-ceiling issue is just the first sign of the unraveling of the dollar. Raising the debt ceiling is just another way of saying increasing the money supply and thereby robbing value from all the money already in circulation.

Since it is the American citizens who are robbed by such devaluation, the refusal of Congress to allow the administration's insane over-spending represents the first act of the people telling the government "enough is enough". It's the seed of a tax rebellion.

The first international result of US default will be a very drastic devaluation of the dollar on the currency exchange. Overnight, foreign goods, (including oil) will become much more expensive.

Given the state of the US economy, I expect that the dollar will lose about half its exchange value immediately and will continue falling for a long time thereafter.

As the US learns to do without all those imports, the rest of the world will have to learn to do without that great market that used to consume so much of its merchandise.

Europe will be the big winner and China will be seriously hurt as America was always its biggest export market.

Trying to pump the last drops of blood out of the dying economy.

Can you say Fiat-Money!

No they wont default, it would be too embarassing for that to be allowed to happen regardless of who the encumbent is.
A default would hang around your neck like a secret shame...
Kinda like Herpes, and no future govt can cure that...

Yesterday, the official growth figure for the US GDP for the first quarter of 2011 was revised downward by 81% from the administrations announced estimate of 1.91% to 0.36%.

A revision of that magnitude can only be interpreted as another lie. Apparently they hoped to get their debt ceiling bill passed before the lie got exposed.

The estimate of 1.8% growth for second quarter is certainly just as false as that of the first quarter.

These dismal growth rates occurred after the Federal Reserve's $600 billion in QE2 money printing, proving that printing monopoly money doesn't really create economic growth or employment. It just postpones the inevitable collapse by a couple of months and ensures that it will be more severe when it comes.

More debt doesn't cure a crisis caused by debt.

As of Thursday night, the US treasury had $51.6 billion in cash, and its cash position had declined by $15.2 billion over the last 24 hours.

They expect $172.4 billion during August in tax receipts, but must pay out $306.7 billion for the same period, leaving an estimated deficit of $134.3 billion for the month.

They have to pay $30 billion on the interest of the national debt on August 15th.

Even a tiny 30-basis point increase in the interest rate on the national debt would totally wipe out the imagined deficit "reductions" of either the democrat or republican "austerity" plans.

In other words neither party is serious about addressing the debt issue. Both want a superficial patch job that won't do anything at all to fix the situation.

Imposing drastic austerity measures with elections approaching would be political suicide for politicians of either party.

So Washington just intends to fiddle while the economy burns. Protecting their rich friends and supporters at the expense of the general population.

The administration has employed various accounting gimmicks to sidestep the debt ceiling in recent weeks. But next Tuesday, there won't be any tricks left, and a lot of things will go unfunded.

They'll have to pay the $30 billion interest payment on the national debt (to avoid default), $49.2 billion in Social Security payments, $50 billion in Medicare/Medicaid payments, $31.7 billion in defense payments, and $12.8 billion in unemployment benefits.

With $23 billion in Social Security payments due to be paid on August 3rd and $59 billion in t-bills due on August 4th, the remaining cash balance will dissipate very quickly.

Neither the democratic nor the republican bill to raise the debt ceiling will amount to more than a brief delay in the collapse of the US economy.

And every day it delays means the result will be more severe.

Everybody in the world knows how the US ran up its huge deficit by wanton deficit spending for decades.

So it wouldn't be so much a "secret shame" as a public scandal.

Well, actually the world economy hinged on what the US did ever since WW2.

It's not like there is this crisis that just appeared out of nowhere.

This current situation is just the very predictable culmination of continual theft on the part of politicians and global financial powers (banks, Wall Street, the Fed, Rockefellers, Soros, the military industrial complex, IMF, World Bank, etc etc etc)

If you continually siphon off the wealth of a nation into private hands and replace it with paper money based not on gold but on debt, eventually it all collapses.

It's not like the right decision now can avoid the collapse of the economy. It's way to late for that. It's just a choice of letting it collapse now or more violently later.

too many drinkin from the well.have v.have nots.

Guy in the White House has gone off the Deep End!



President Obama Is No Longer Tethered To Reality

Blame him!!!!!!!!!!!!!!!

Which supports my position that there's not enough millionairres to pay off the national debt.

If we default, will President Obama go to the major capitols of world and apologize?

You know a "Default World Tour" like rock bands do. London, Paris, Berlin, Rome, Moscow, Peking, Toyko, Cairo, Mexico City, Rio, Havana,
Carcus....I can add more. But I think that you get the point. Maybe he can do 135 cities in 18 months till the 2012 Presidential election is here.

........and he shall be called O-Bow-ma!
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A few years ago one Aus Dollar was 69 US Cents. This was good for both with the US being a manufacturing exporter and Aus being a resources exporter. Aus really benefited by exporting primary goods and agriculture over finished goods as the growth of Asian markets has hammered other western world nations who rely on their manufacturing industries.

But today the one Aus Dollar is about 1.10 US. I expect it will probably rise now to about 1.20 with the changes coming up.

My home state is small and has few international industries so the global financial crisis did not his it much, but now things are starting to take an impact as one of the highest forms of revinue in my small state is from tourism.

I think when this financial crisis is over a few more nations will be economic basket cases. One wonders what the social aspect to this will be with internal programs around the world being slashed to save funds. It can't help if things like police numbers on the streets are slashed.

Second Great Depression? Well probably not - but it certainly has a few poeple sitting up and taking notice.