Posted on 09/06/2013 7:18:25 PM PDT by marktwain
If I invoke the phrase “Greek debt crisis,” do your eyelids start to grow heavy?
Do you somehow find it difficult to summon up a fresh wave of outrage if someone mentions that when Barack Obama’s National Commission on Fiscal Responsibility and Reform (better known as the Democratic Tax-Hike Justification Front) convened for its second monthly meeting last week, Congress was already 41 days past its April 15 deadline for passing a budget resolution — scared to death to admit, in an election year and the third year of the Second Great Depression, just how much new debt and spending they intend to crank up?
(snip)
No, if you want to get the U.S. government off the borrow-and-spend treadmill, there’s only one answer: default.
You only have to win one election, at which point you declare Social Security, Medicare and Medicaid all bankrupt and closed; in default. You believed the promises of those lying politicians? Your problem.
You own U.S. bonds? Tough. The politicians lied when they said they had the power to make succeeding generations pay their debts; we’re defaulting. You don’t get another cent.
Presto: Half of those “mandatory” federal expenditures are gone, overnight. NOW slice everything else by two thirds (that’s a “net” figure — the “Department of Agriculture,” the “War on Drugs” and the “Firearms and Explosives” tentacles of the BATFE would immdiately be reduced to zero, of course), and you’ve reduced both federal expenditures AND FEDERAL TAXES by 80 percent.
But here’s the best part. Four, six, eight years later the pendulum swings, as it always does, and the socialists come back to power. They go back to the folks who used to loan money to Uncle Sam, saying, “Hi, Remember us? We’re the compassionate progressive collectivist redistributionists, and we’re back.
(Excerpt) Read more at vinsuprynowicz.com ...
Default is looking better and better.
nope. dollar will collapse, and the rest of the world’s economies will fall over like dominoes. a new universal currency will be proposed and implemented under the guise of “being easier to manage, so this doesn’t happen again”.
Can we still do that? I thought they gave it all to Bush.
No, but this is a possibility:
Poland Confiscates Half Of Private Pension Funds To “Cut” Sovereign Debt Load
http://www.freerepublic.com/focus/f-news/3063565/posts
We are beyond the point of return in paying it off.
Food is the ultimate currency.
Maybe we can get Bono to go to China and ask them to “forgive” our debt :)
when they decide to have new currency, will we be reimbursed for our cash and pocket change?
That would make a down payment on the debt.
The FDIC has already ruled that unsecured creditors will bear the cost of any more bank failures in the US. What almost no one understands is who is an unsecured creditor. If you deposit money into a bank account, you are an unsecured creditor of the bank, which means that any money above the FDIC limit will simply be confiscated and turned into equity at a rate where it is essentially gone. The money under the FDIC limit will still be there, but the FDIC never really states that you can access it at any time, so you will be blocked from withdrawing it for years. Same thing that happened with MF Global will happen with any failing firm in the future. The depositors will get fleeced first.
Then they will come for the 401k money to pay for pensions and social security.
In the Bible God ordained a year of Jubilee, in which ALL debt was cancelled. This happened every 50 years - or once in a lifetime.
The Polish government just confiscated bonds held in pension funds. How’s that for a precedent? Just basically make them all worthless.
They won’t even pass a balanced budget amendment.
A few years ago our official debt crossed $12 trillion at approximately the same time as the population of the Earth crossed 6 billion.
Since a trillion is 1000 billion, that means if every single person on planet Earth wrote our Feral govt a check for $2000, our balance would have been $0.
No way we can grow our economy out of this hole.
I’m no economist, so I ask what if all the major currencies of the world printed themselves out of debt at the same time? What happens?
“I’m no economist, so I ask what if all the major currencies of the world printed themselves out of debt at the same time? What happens?”
It appears to me, that those holding government bonds would lose value. Investments in cash, such as paper currency, bank accounts, and things with fixed payback, such as mortgages, would all lose value. That value would “pay off the debt” with money that had lost significant value.
Investments in tangible assets, such as gold, land, homes, and stocks, would all rise in nominal value with the engendered inflation. Overall, debtors would be winners, those making loans, losers.
I am sure those far more sophisticated than I can give better answers.
For example, some stocks would benefit from inflation, and some would not. Perhaps they could be picked.
I think you’re on th right track. Obviously it could cause a worldwide panic and depression of untold dimensions, but then again it just might work. It should harm the irresponsible more than the responsible.
Unfortunately it wouldn’t solve the political problem, and the Rats would see it as an opportunity to borrow money again and slowly get us right back to where we are, or simply steal the assets of any productive people for redistribution.
It would require a constitutional amendment, no more debt period.
Anyone who thinks their 401k and Roth and such are safe is whistling in the dark.
Or more likely the govt will just give all of our bank accouonts and 401k”s a 50% haircut. Problem solved at least temporarily.
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