Posted on 09/07/2013 1:48:47 PM PDT by RKBA Democrat
Edited on 09/07/2013 2:39:18 PM PDT by Admin Moderator. [history]
-— government layoffs -—
The silver lining... Potentially.
They can also nationalize private retirement accounts and “invest” them in treasuries. The idea has already been kicked around.
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Just happened in Poland.
We are. Prepare to have your retirement accounts seized.
China is locked in a murder/suicide pact with us. They dump our debt - our economy crashes - we stop buying cheap plastic stuff from them - their house of cards collapses.
The question is how much of our debt would you have to dump to crash the system? Would Russia’s share be enough? What’s the tipping point?
Seriously listen to him speak. He never speaks as the voice of the United States of America. Instead, he offers an explanation of what he thinks and why. His statements are always about him, what he thinks, and why. Being World Cop requires leadership. Talking about it requires nothing other than a media microphone.
A real President would be in Washington directing policy. But Obama avoids that choosing instead to do isolated interviews where he does not have to share the stage with anyone else - where he alone is the center of attention. That way, he gets to talk about his favorite subject, Baraq Obama, and how Baraq Obama personally assesses the situation.
China and Russia will be stiffed while the Europeans and Arabs will be ceded property and control of the US military (under the UN).
The US will be the thug enforcer for the Banksters and Arabs for use against China and Russia.
A few years ago I would have ignored your comment as a delusional and paranoid rant. But that was a few years ago.
Enough already.
I say, if this government feels froggy, they should jump.
Exactly. And at what loss? And better yet, what will China do with all those US dollars they collect from their current account surplus? They will either buy our goods and services, or invest in our economy. Yup, sounds like doom to me. /s
But that won't stop the doomers from speculating. It's a common occurrence on the FR.
Who will China sell its goods to if they will not buy US bonds and Washington responds by putting a hefty tariff on all Chinese made products?
A few years ago I didn’t have enough information to make the pieces fit, and I couldn’t even conceive of the comment.
Russia has a sweet deal selling weapons to Syria. She ain’t gonna like U.S. intervention.
Yes, I posted a thread about it yesterday.
http://www.freerepublic.com/focus/f-bloggers/3063501/posts
The debt is going to be repudiated, obviously.
There is no historical example of a debt of this nature being paid off. What has never happened, won’t.
Usually when dumping is a good idea, the security has already lost much of its value. However governments can dump foreign securities with political purpose, accepting some monetary loss in the process. It's still cheaper than a nuclear war.
With regard to "to who," it does not matter. There won't be enough buyers anyway - who has spare change to buy a trillion dollars worth of US paper? As result, the value of that debt will fall through the floor. The USA will be unable to sell more debt because there will be too much of cheaper one on the market. The USD will drop in value, and you won't be able to pay with it for foreign goods. You will need RMB and CDN and whatnot - and they will be gladly sold to you... for the price so high that you can't afford it.
In the end, the USA will default. Nobody expects the USA to ever pay - it's not in the cards. The question is only how soon it will happen, and what will various countries gain from that. China has a great opportunity to buy themselves a great prize. They may not even lose all that much because in the last decade China actively buys various resources (land, mines, ore, etc.) for US cash and for US debt.
Too bad we can’t give you a green arrow or a “like.”
“The debt is going to be repudiated, obviously.”
Eventually it will be. But not before TPTB squeeze the last scintilla of wealth out of the middle class.
We own more of our debt than China does.
It’s sort of like getting jugged for kiting checks, and your spouse goes to ‘Bad Boys’ bail bonding (to pledge the collateral and pay the premium) and asks, “Will you take a check?”
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