US Default Will Kill Many Here?

[Thaiyotakamli]

US is just trying to create global financial panic to hold the world ransom. They can print/inject a trillion dollars during Quantitative Easing to bailout bankers, they can't raise their debt ceiling?

the problem is if they keep on raising the debt ceiling, the interest payment one day they cant afford it like Greece and raising debt ceiling is just a temporary measurement, they need to have more austerity and increase tax to save more money to repay their loan

[Tigershark1976]

the problem is if they keep on raising the debt ceiling, the interest payment one day they cant afford it like Greece and raising debt ceiling is just a temporary measurement, they need to have more austerity and increase tax to save more money to repay their loan

 

 

yap, its not sustainable, but US politicians nvr care abt that....

[Thaiyotakamli]

yap, its not sustainable, but US politicians nvr care abt that....

lagi worse is the USA MNCs dont care about their govt, apple has more cash than their govt lol

[Yewheng]

Than China should just pull out from US and save the world from being drag down by US.

[Nightsky]

US is just trying to create global financial panic to hold the world ransom. They can print/inject a trillion dollars during Quantitative Easing to bailout bankers, they can't raise their debt ceiling?

 

Now is a good time for Congress to wayang mah!

[Gendut]

Than China should just pull out from US and save the world from being drag down by US.

 

And in turn drown themselves?

 

If US collapses, China tanks.

[Yewheng]

And in turn drown themselves?

 

If US collapses, China tanks.

 

China not tanks, I mean you see are.. China now holding the most $ in US treasury bond. So let's say China decide to pull off, what do you think other countries will do? Others will also follow suit as other countries also do not want to be drag down by US. So now what happen is all countries are waiting for one another to pull off, if no countries move, they just stay put. So it's like playing chess, see who make the 1st move.

 

However, very fast when things become unsustainable, more and more countries will decide to pull off from US. If let's say China still haven't pull off from US and other countries decide to pull off 1st, than China will be the one who will tanks all the damage and thus in turn do not good to the whole world also. The sooner China do the right thing, the faster it will force US to have no choice but to go into deep recession and not wait till situation become more worst when other countries pull off before China and that's when more damage will be done to the world as compared to now if China do the right thing.

Edited July 31, 2011 by Yewheng

[Icedbs]

They got ten aircraft carrier as backing leh, in god we trust.

 

Bro..that was bought on credit too.

[Without_a_car]

the problem is if they keep on raising the debt ceiling, the interest payment one day they cant afford it like Greece and raising debt ceiling is just a temporary measurement, they need to have more austerity and increase tax to save more money to repay their loan

 

 

 

 

US government has no intention of repaying the principal what so ever.

 

A pdf book on petrodollar recycling.which explains the mechanism of the dollar "pegged" to black gold. How this enables the US government to create demand for fiat USD after its de-link from the gold standard.

Petrodollar:The hidden hand of American hegemony

 

Product Description

Between 1973 and 1980, the cost of crude oil rose suddenly and dramatically, precipitating convulsions in international politics. Conventional wisdom holds that international capital markets adjusted automatically and remarkably well: enormous amounts of money flowed into oil-rich states, and efficient markets then placed that new money in cash-poor Third World economies.

 

David Spiro has followed the money trail, and the story he tells contradicts the accepted beliefs. Most of the sudden flush of new oil wealth didn't go to poor oil-importing countries around the globe. Instead, the United States made a deal with Saudi Arabia to sell it U.S. securities in secret, a deal resulting in a substantial portion of Saudi assets being held by the U.S. government. With this arrangement, the U.S. government violated its agreements with allies in the developed world. Spiro argues that American policymakers took this action to prop up otherwise intolerable levels of U.S. public debt. In effect, recycled OPEC wealth subsidized the debt-happy policies of the U.S. government as well as the debt-happy consumption of its citizenry.

 

Commodities/Oil is priced exclusively in USD.

 

In 2003, gold was 320 USD per troy ounce. Now it is 1600 USD per troy ounce. Technically the USD should devalue by 5 times. The fact that the commodities/oil is priced exclusively creates an artificiality demand for the USD, allowing it to gradually decline instead of collapsing.

 

Unless the Saud family of Arabia, leader of OPEC wants to be overthrown, oil will still be priced in USD for a very long time to come.

 

In 2000, Iraq decided to switch all their reserves to Euro, and demand their oil to paid for in Euros, the Bush administration invaded Iraq and topple Saddam's regime.

Edited August 1, 2011 by Without_a_car

[Without_a_car]

China not tanks, I mean you see are.. China now holding the most $ in US treasury bond. So let's say China decide to pull off, what do you think other countries will do? Others will also follow suit as other countries also do not want to be drag down by US. So now what happen is all countries are waiting for one another to pull off, if no countries move, they just stay put. So it's like playing chess, see who make the 1st move.

 

However, very fast when things become unsustainable, more and more countries will decide to pull off from US. If let's say China still haven't pull off from US and other countries decide to pull off 1st, than China will be the one who will tanks all the damage and thus in turn do not good to the whole world also. The sooner China do the right thing, the faster it will force US to have no choice but to go into deep recession and not wait till situation become more worst when other countries pull off before China and that's when more damage will be done to the world as compared to now if China do the right thing.

 

The thing is what other currency can China and the world convert to? The Euro debt crisis was triggered/escalated when a close door meeting to switched out of USD to Euro took place. Which makes you wonder the Japan's tsunami/nuclear meltdown origins were more sinister.

 

The demise of the dollar

http://www.independent.co.uk/news/business...l?service=Print

 

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

 

By Robert Fisk

Tuesday, 6 October 2009

 

In the most profound financial change in recent Middle East history, Gulf Arabs are planning

Edited July 31, 2011 by Without_a_car

[Maroon5]

i thk u guys shd jus try to view the US as a highly geared nation. u know the guy who earns 1k and borrows 800, but behaves like a rich man w nice new cars n buys new clothes n then u who earns 2k wonders why he is so rich. afterall they are the no1 economy and as long as they are assured of the income, they can afford tat gearing.

[Scion]

Like I said, US holds 9000 ton of gold. PRC holds 1000 ton of gold. Say the US bankers allow the dollar to collapse (forced everyone to write off their debt), China's 3.2 trillion will go up in smoke.

 

China's only practical retaliation, is to nationalise all US MNCs on Chinese soil.

 

 

it's funny that people thinks China will be biggest loser if US defaults...

 

but actually US citizens are the biggest creditors of US debts (6 trillion public debt vs 4 trillion external debt)

 

for external debt, Japan also comes close to China at 880b (compared to China's 1100b)

other major creditors include Britain, OPEC and Brazil

 

so if US defaults, everyone loses, including their own people

[Icedbs]

it's funny that people thinks China will be biggest loser if US defaults...

 

but actually US citizens are the biggest creditors of US debts (6 trillion public debt vs 4 trillion external debt)

 

for external debt, Japan also comes close to China at 880b (compared to China's 1100b)

other major creditors include Britain, OPEC and Brazil

 

so if US defaults, everyone loses, including their own people

 

If US defaults, everyone loses.

 

If US don't default, future generation dies.

[Tigerwoods]

whether it's Democrats, Repulicans or new party, it's all about self-interest and moolah$

no country is different when it comes to politics, don't you think so?

No really. Republicans supports old money politics

Democrats support new money politics

[SimonTan]

Maybe this default extension is really the precursor for the dec2012 world end day!!

How long can they raise the limit....there must be a crashing down somewhere down the road...

 

[Donut]

Maybe this default extension is really the precursor for the dec2012 world end day!!

How long can they raise the limit....there must be a crashing down somewhere down the road...

 

No one in us garment seems to care......

[Icedbs]

Dear bank,

 

I can't afford to pay my current bills and those of the future months ahead.

 

Can you raise my credit card limit?

 

With that, I can continue to pay my bills for another 6 months

 

At the end of the 6 months, I am sure I will need another increase.

 

Thanks

[Itsec]

U dun get it, buy pty when that guy bought at low px, so he makes some $$, and not from those guys who bought on high, get it !!!

 

I agree to disagree on silver and gold, bt never count them out, quite happening outside now . . .

 

gold/silver is happening outside now... currency/gov bubble is popping out..

 

To curb inflation, investors/riches will look for other products or investment products such as properties, invest in companies which the country's economy is stable or buying commodities..

 

BTW, i like your signature..