[TruthConquers]

Both.

Too much of this economy is a ponzi scheme.
A Well hidden ponzi scheme.

As MORE people fall into poverty with this down cycle, there will be LESS tolerance for the cuts. And yes, even if the cuts Ryan has proposed occur, we are vulnerable to defaults because of credit derivatives that can still bring down the financial system in the US. Add in the FED monetizing the debt and buying Treasuries to fund the government, it is a house of cards ready to fall.

[curiosity]

And yes, even if the cuts Ryan has proposed occur, we are vulnerable to defaults because of credit derivatives that can still bring down the financial system in the US.

Which credit derivatives? Do you even know what a credit derivative is?

Add in the FED monetizing the debt and buying Treasuries to fund the government, it is a house of cards ready to fall.

Dude. The Fed always increases the money supply during recessions. This is nothing new.