Is it possible that our American friends are going to default ?Is this GAME of brinkmanship going to end, and when are the US political classes in Washington going to realise this shit affects us all Globally, I am glad I sold my shares a while back........a.concerned observer !!!!!
the american debt....or as its known in the rest of the world.....PASS THE PARCEL
by fools gold 8 Replies latest jw friends
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Borgia
Is it possible that our American friends are going to default ?
Yes of course it is possible.
If this is the way the US can be forced to live within it's means than by all means, default. Governements have defaulted all the time and a US default is no exception.
There's 1.7 trillion flown into the US treasury coffers till june, far exceeding the income of last year. My guess is that they will still get another half a trillion in july to september. I fail to see how a default on interest obligation, medicasi/care and social security checks is going to occur.
What I do agree with is that incurring debt upon debt upon debt is not very helpful in getting out of debt or restrain endebtness. Interest payments take money out of the own economy to waiver it to someone else's. Imagine what would happen when the government is growing exponetially! Exactly, you would need to raise the debt ceiling time and again to pay for an expanding government.
But the US is defaulting constantly. But not only the US, Europe, and other coutries in using the same monetary tools are defaulting on their obligations. How? By manipulating the moneysupply. It's called devaluation. The inflation in Europe is at 11 or more%. You only have to check the growth of the money supply against the official inflation.
A friend of mine has a US pension of about 500$. It used to be 600 € in value. Now it's worth 375 and dropping. It simply means he can buy less for the same amount. That's defaulting on your own people. I think that's plain bad. It's a device to tranfer wealth without your consent. It is a flagrant disregard for the basis of human discourse: property rights. It's called stealing.
Cheers
Borgia
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fools gold
I am trying to stay out of this internal domestic squable, I dont have any allegiences to either side, but are the Republicans insane ??? They can,t even agree on there own Bill, To address the need to increase the borrowig requirements of the US Fedral Govt, thats being voted on this evening. If the Party in opposistion cannot agree on a compromise, What chance do both sides have, when internal factions are at war with each other ????
I am not aware of the level of sofistication of the electorate Stateside, but The rammifictions of an American default are HUGE
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james_woods
The problem here is spending more than the government takes in and borrowing the difference.
This has to stop, or else the system will eventually go bankrupt.
Borrowing more money just makes this worse.
Trivial cuts in spending will not solve it.
Increasing taxes "on the rich" will not solve it.
The problem is quite simply solved only by spending less.
The reality is that neither the Democrats nor the Republicans have any willingness to spend less so long as money can still be borrowed.
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fools gold
We are in the shit in the UK also, however the best way to deal with a fiscal deficit is { In my opinion } to have an expanding economy, more people working, less paid out in benefits, More tax from individuals and Corps, and ultimately, Investement is crucial to make this happen,Its not happening, QE, is,nt working. I see Britain and the US devaluing our currencys, yet still both are feeble in terms of increasing market share in manufactured goods, The Last Thing We Need is the USA defaulting on its loans and obligations !!! Even shitty little Britain repays what we owe, and have always done so, I Hope Your politicians get a grip ??, If not Im moving to MARS
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sammielee24
The problem is quite simply solved only by spending less.
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It is not that simple nor is that the ONLY way to solve any debt problem.
If I owe money and am having trouble paying it back - I can do a few things. One of them is cut my spending on unnecessary things and the second is to increase my income to pay it off faster. Less spending + increased revenue = more balance and ability to pay.
Neither side is willing to do a thing.
Cut tax loopholes for the most wealthy and the corporations coupled with a reduction in spending is a start. That would also include a major talk about the defense spending which apparently will not reach the table whereas cutting off the funds to veterans is on the table. It should also include major transparency and solutions to the socialization of losses by Wall Street that have cost the average worker around the globe both jobs and money.
The debt ceiling has been raised many, many times in the past. Nobody really knows what will happen IF it isn't raised but I recall watching the 2008 fiasco when Bush threatened the country with martial law and confiscating the money of everyone, if they didn't get approval to bail out Wall Street. Sadly 3 years later the USA is still in a depression with no clear way out and one has to wonder if we had allowed Wall Street to fail, if we could have climbed out of the pits with a goal, a vision, some experience on what not to do. So - do we let the debt ceiling date pass and see what happens? or do we capitulate and raise it without ever really knowing?
Is it more fear mongering than necessary? Who really knows because everyone who says they know, admits there is no way of actually knowing because this hasn't happened before.
Dunno
sammies
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Berengaria
When you have big business begging the government to make a deal, it's pretty clear that the consequences are not good for anyone. If it's worrying the rich, it better doubly worry the rest of us.
If I owe money and am having trouble paying it back - I can do a few things. One of them is cut my spending on unnecessary things and the second is to increase my income to pay it off faster. Less spending + increased revenue = more balance and ability to pay.
Just raise the damn debt ceiling and work on the budget later. What a waste of time.
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straightshooter
Cut spending, but where? Medical costs have risen greatly over the years. But has the Social Security/Medicare payroll deductions risen correspondingly? The American Social Security/Medicare programs will eventually bring the U.S. down if medical costs are not controlled.
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Judge Dread
Just raise the debt ceiling to 900 trillion and that should take care of everything.
JDW