Oh wait. Nevermind.
Posted on 11/02/2009 5:51:52 AM PST by markomalley
The idea that the government of a major advanced country would default on its debt -- that is, tell lenders that it won't repay them all they're owed -- was, until recently, a preposterous proposition. Argentina and Russia have stiffed their creditors, but surely the likes of the United States, Japan or Britain wouldn't. Well, it's still a very, very long shot, but it's no longer entirely unimaginable. Governments of rich countries are borrowing so much that it's conceivable that one day the twin assumptions underlying their burgeoning debt (that lenders will continue to lend and that governments will continue to pay) might collapse. What happens then?
The question is so unfamiliar that the past provides few clues to the future. Psychology is crucial. To take a parallel example: the dollar. The fear is that foreigners (and Americans, too) will lose confidence in its value and dump it for yen, euros, gold or oil. If too many investors do that, a self-fulfilling stampede could trigger sell-offs in U.S. stocks and bonds. People have predicted such a crisis for decades. It hasn't happened yet. The currency's decline has been orderly, because the dollar retains a bedrock confidence based on America's political stability, openness, wealth and low inflation. But something could shatter that confidence -- tomorrow or 10 years from tomorrow.
(snip)
Deprived of international or domestic credit, defaulting countries in the past have suffered deep economic downturns, hyperinflation, or both. The odds may be against a wealthy society tempting that fate, but even the remote possibility underlines the precariousness and the novelty of the present situation. The arguments over whether we need more "stimulus" (and debt) obscure the larger reality that past debt increasingly constricts governments' economic maneuvering room.
(Excerpt) Read more at washingtonpost.com ...
We’re already broke. It just depends upon how long the rest of the world is willing to pretend we are not.
Japan is our canary. They are farther down this path then we are. If they go, we are shortly to follow.
We are way past broke by over $100,000 for each taxpayer.
The government is broke. Not sure about the majority of the population.
“How can I go broke? I still have more checks left in the checkbook!”
NO
We’re going to inflate out way out of the debt. And once the people realize what this doofus has done, we can all make our reservations for Washington, DC for Jan. 20, 2013 at the inauguration of President Sarah Heath Palin.
Timothy, is that you? ;-)
The level of inflation required to “inflate our way out of debt” will cause an economic collapse on the order of Zimbabwe.
I believe this is their actual goal, though.
America is BROKE.
Here’s the scariest report you’ll read. It scared the hell out of me.
http://www.moneyandmarkets.com/webinar-transcript-the-war-on-the-dollar-4-36178
Are you just getting scared, or are you getting prepared?
What is $13 trillion in the hole, Alex?
Not a long shot at all. It is a CERTAINTY.
We cannot pay back what has been borrowed to this point, let alone the trillions that Zero’s cronies are busy stealing while the sheeple sleep.
Stewart Varney on Fox & Friends. I just love the guy.
Maybe his British accent makes him sound more authoritative. LOL
I swerved past scared after election day, like many around here.
Not sure how well I’m doing, but here’s what I’ve done:
Been buying and continue buying gold and silver to preserve the value of my savings. This is the meager profits from the sale of my home in 2006. I never re-invested in the housing market, as prices were going up too fast for me.
Because I’m in what is essentially, a far flung suburb of Las Vegas, I’m waiting until the holidays are over and then I prepare to move to Fort Worth, TX. I was laid off the end of January and Las Vegas (and the surrounding areas) will take at least 5 years to recover. I’m not staying around here to wait. Utah law allows me to continue to receive my unemployment, even if I move out of state.
My plan is to move to TX (where there are jobs), set up shop temporarily, finding a job and then a house. I will be able to purchase a modest home and pay cash for it, and be mortgage free.
Samuelson, like Stein, offers a conservative viewpoint.
Oh wait. Nevermind.
I should have mentioned, the reason for waiting after the holidays is that I have a sister and her family here. She’s the one who lured me here.
I’ve come to realize that she takes it rather personally that I want to move. She feels offended that I would consider leaving, laying quite the guilt trip on me.
But she married into money. She can afford to be gracious, which she is, flying members of our family into S. Utah for Thanksgiving each year, which is her big showbiz moment. So I didn’t want to ruin this for her, by moving before the holidays. She’s a good egg.
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