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Federal Government will float the states a loan,bet on it,and will not default on debt,but what will happen is bond yields will rise,bond prices will fall. Less as a reflection of risk of repayment,than of currency devaluation.Not something in the imminent future,IMHO.
-Economies around the world go through all sorts of ups and downs. I.e., Japan after WWII. Then 30 years later.
Singapore after WWII or in the 60's. What was there? Nothing. Now look at it. All the big creditor asian nations after WWII or in the 60's were small time players.
The US after WWII has been like a big lumbering barge. It's never going to completely sink. The rest of the world still needs US consumers.
I always just say on this ask yourself why those with billions in play continue to buy treasuries if they are certain to default? Isn't that just stupid? Things don't have to go into disaster mode to make a ton of money betting for rates to go up well beyond market consensus and yet very few have made much of anything taking this bet lately. I mean everyone has an opinion, but most of our opinions don't come backed with a whole lot of cash. Yet those who do aren't exactly buying into this default scenario.
Even more irrational is how when it doesn't happen you start getting people crying out the markets are rigged. That makes about as much sense as someone saying if the NFL and its officials would just stop rigging everything the Detroit Lions would have won 5 Super Bowls by now.
Yet those who do aren't exactly buying into this default scenario.
That is the funny thing, this report that the thread references doesn't even endorse a default scenario as being likely. It was a misleading thread title by someone who then says "Wasn't trying to mislead, and not implying it's imminent" yeah the thread titled Goverment Default Inevitable surely wasn't meant to imply anything, especially with the source saying the opposite.
The government won't default, but social services will be parred past the bone and into the marrow. It will all be done under the guise of, "The USA is in a crisis the likes of which it has never seen and the American people must get used to fending for themselves even if that means foraging garbage dumpsters. We'll come out of it eventually, trust us, but for now the pain must be evenly spread." Of course the richest 5% will put on a good show of looking deprived like the rest of us, while secretly continuing to enjoy their opulent lifestyle, albeit just not as ostentatiously as before.
-Economies around the world go through all sorts of ups and downs. I.e., Japan after WWII. Then 30 years later.
Singapore after WWII or in the 60's. What was there? Nothing. Now look at it. All the big creditor asian nations after WWII or in the 60's were small time players.
The US after WWII has been like a big lumbering barge. It's never going to completely sink. The rest of the world still needs US consumers.
That maybe true a time ago, we cannot afford to keep consuming anymore, we dont have the economy, highly skilled manpower, manufacturing to back any of this up, schools/parents failing with their kids education. The distant future looks bleak.
The US will not default because its debt is backed by the assets of its citizens . The US can easily pay its debts with your assets. The problem with that is now you are poor.
But I can assure you that is what will happen. Although it will probably happen slowly through ever higher taxes and cuts in government services.
The blue print is already being laid out in countries like Greece and Ireland. Iceland is the only place that it has not worked so far, as the people had the stones to stand up and tell the bankers to pound sand. Unfortunately Americans do not have the same level of intelligence or courage as the people of Iceland.
The government will continue to give money to the rich through lucrative government contracts, and put it on your tab. You will pay higher and higher taxes, fees, tolls, and what ever other name they want to call them until your standard of living is on par with the rest of the world.
You don't think all this crazy spending was and is being done because the powers that be are THAT stupid, do you? They know where we're going and are loading up on free drinks at the bar while the bow slowly dips into the icy black...
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Goverment Default Inevitable
