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All those people and millions more like them are dependent on deficit spending by their Lord and Master.
Many of those people are from Conservatively red states. People of all races and political affiliations or on wic, food stamps, and welfare, so I'm kind of tired of hearing this new Republican talking point over and over again.
Many of those people are from Conservatively red states. People of all races and political affiliations or on wic, food stamps, and welfare, so I'm kind of tired of hearing this new Republican talking point over and over again.
Yeah, I guess you weren't watching that video of the animal stampede.
I'm curious, why would it be a bad thing if the US defaulted on it's debt?
no one would buy our debt for fear we would stiff them. Oh, and those who bought our debt might call in their marker and demand to be repaid immediately.
It's moot point, since I seriously doubt any president, including Obama, would purposely tell our Treasury not to pay on the interest and principle of our debt.
Well... Would it be a bad thing if YOU defaulted on YOUR debt?
It's kinda like that, only worse.
Just out of curiosity... how old are you, anyway?
Yes, but the US is only defaulting because they can not borrow more money to pay their debts... It's like I have a Bank of America Visa card. I do not have the money to pay the bill. I do not want my credit rating to be affected because of my non payment, so I take out a loan at Bank of America to pay the payments of my Bank of America Visa card that I'm still using and still can not make payments on using my own income... Would that be a good thing for YOU to do with YOUR finances?
Are you really asking my age as a way of insulting me?
Last edited by DoniDanko; 10-16-2013 at 04:11 PM..
U.S. entities own two thirds of US debt - these Americans will suffer if we default on our payments:
The U.S. government's military retirement fund owns 2.4% of the national debt.
The U.S. government's civilian employee retirement fund accounts for another 5.6% of the nation's debt.
The U.S. Federal Reserve, thanks to its quantitative easing programs of recent years, has racked up holdings equal to 10.8% of the total U.S. national debt.
The U.S. Social Security Trust Fund claims 16.7%.
U.S. individuals and institutions, which includes regular Americans, banks, insurance companies and other government entities, own 30.4% of the nation's debt.
It's not the default specifically - it's the response from other countries removing the dollar as the reserve currency that would be the problem... the BIG problem.
Gotta put all of these things together...
Other countries have chosen to make the dollar the reserve currency. They can also choose NOT to deal in dollars.
The key is that dollars must hold its value. But when our government continues to print more and more dollars - and make debt payments based on printed dollar... Look at at this way - if someone owed you money and you knew that person was able to print money and pay you off - and he does it over and over and over again - at some point you start to wonder how valuable the printed money is.
So you combine the mass printing of money - along with the fact the we are racking up insurmountable debt - and other countries start figuring out that the dollar is garbage. And they will deal in other money.
When that happens globally - all of the dollars that other countries have (or have invested in) will no longer be desired - and the US will be flooded with all of these printed dollars - and its value will be crap. And when you have crap for currency, it won't buy crap - because it has no value.
It's all supply and demand in the end. There is an increasing mass supply of dollars being circulated that at some point will not be in demand by other countries. And a mass supply of dollars without any demand equals no value.
Last edited by DRob4JC; 10-16-2013 at 03:53 PM..
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