What year was that... 1995, 96, 97, 98, 99, or 2000??
Posted on 03/08/2023 6:19:48 AM PST by ChicagoConservative27
As the country heads towards a debt ceiling showdown later this summer, a dangerous idea is gaining currency. It is that the U.S. Constitution makes debt default impossible. This idea risks breeding complacency among our politicians about the economic and financial market dangers associated with the debt ceiling standoff that lie ahead.
The essence of the idea is that the 14th Amendment to the Constitution unequivocally states that “the validity of the public debt of the United States, authorized by law . . . shall not be questioned.” If the debt ceiling were breached, so the idea goes, the government would be forced to prioritize debt service payment over regular government expenditures to avoid default. It would have no option but to cut back on its other spending to generate the necessary resources to do so.
(Excerpt) Read more at thehill.com ...
It already has. Twice.
In 1933 the US owed you an ounce of gold when you had $20. After the default, the US only paid you about 5/8 an ounce of gold for that $20.
In 1971 the US owed you an ounce of gold when you had $35. After the default, the US wouldn’t give you any gold for that $35.
Completely true, in that the US Constitution does not authorize fiat currency, only real money. Since the US traitors farmed out unconstitutionally the money supply to private central banksters, not only can we, as Sovereigns, "default", but I can go much farther than that - we can stop paying interest in addition to the FACT that we have never paid a plug nickel in principle of the $31T+++ in debt. And, even further than that, the banksters at the FED should now have the tables turned, and PAY US REPARATIONS for all the theft and fraud of the last 100 years (since at least 1913, and probably more).
Default and it will open the door for China to acquire the World Reserve Currency.
The entire idea of a debt limit is a limit. There’s never been a debt limit. How can I write that. Well, I’m not so eff’n stupid as the vast majority of DC. Limits have a limit. There’s no limit when it increases every time we reach the previous imaginary limit. There’s been no limit on spending and hence no limit on debt. Modern Monetary Theory is for morons. It doesn’t work. We need to do the opposite. Massively cut government and government spending. I don’t give two 💩’s about government employees losing their jobs either. Make them find jobs in the private sector and be productive. Build something for a change. That’s better than people in the private sector losing their jobs. They are the ones that actually pay the bills.
I am not even sure folks understand what “default” means.
There are a million different ways to “default” on government debt.
If the government is “short” 1% of its current cash needs then it can just delay payment of any of those obligations it chooses—technically that is a “default”.
States and cities have done that from time to time—not that big a deal.
“Default and it will open the door for China to acquire the World Reserve Currency.”
A default is the result of many years of fiscal fraud and deficit spending. Nobody worried about China then when we actually could have done something about it.
We can print all the dollars we need to technically fulfill our debts. We will do exactly this.
The folks who get repaid will ultimately be just as unhappy as if we didntbrepay them at all.
Folks,
Remember a MAJOR WORLD POWER has gone bankrupt in our lifetime.
Anyone remember it?
USSR?
Of course, that won't happen because the American owners of Chinese debt are American citizens. If U.S. government agencies owned the unpaid China debt we would have dropped the hammer on them long before "Nixon went to China".
Wrong. It would make selling more debt more expensive. It wouldn't be any more difficult.
You might even have to denominate the debt in another currency like Euro's or the Chinese Yuan or Brics.
Don't think that our politicians won't promise that your children will repay with gold if they have to.
Prove me wrong.
You’re wrong.
Empty means containing nothing.
Air is something.
Q.E.D.
Yes it’s in true democrat fashion they know they will be long gone but leave the problem for others to repair.
Hey I got my money FU
Such a helpful post.....
Presently, China has no effective banking system.
The China banks both tremendously large and village small have ceased or seriously reduced the ability to remove deposits. People with money in the bank are destitute because withdrawals are not allowed. Companies are in the sae shape and aren’t meeting the payrolls for weeks or months at a time
The thought of a China world currency is presently out of question. It can’t happen. The banks are essentially dead
Actually - one fiscal year under Clinton, in the late 1990s, total USA federal debt actually declined.
Many factors converged at the same moment...
(1) The 1994 Gingrich Insurrection briefly caused real reductions in federal spending.
(2) Dot.com stock market gains created record capital gains tax revenue.
(3) The death rate for Baby Boomer parents peaked and caused record death tax revenue.
(4) We briefly had record employment numbers and very low inflation.
(5) The price of oil briefly collapsed to near $10 a barrel, which eliminated our trade deficit for the first time in decades.
What year was that... 1995, 96, 97, 98, 99, or 2000??
There could be a vacuum. Keep going.
I try...
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