US Default Will Kill Many Here?

[Sabbie]

If there is any dignity left in the US gov. , they should choose to default.

 

Once defaulted, they will have to think hard how to cut spending because they can't be printing anymore money to solve their problem.

 

Yes, the world will go through some pain, but let's call that an rehabilitation for a greater good.

 

Otherwise, we are just prolonging the problem, we get a recession every few years and then finally a tsunami depression on our future generations or our kids.

 

Talk about kids now paying for our housing loan in future. If this don't get solved, I think they will be paying far more for our indulgence and igorance.

 

I say take the pain and go for default. Admit it like a man that US has overspent and is now time to stop the bleed.

 

so how? have you sold all your properties and gone short?

[Kanchelsk]

USA doin show leh.. they already have a backup plan one... just want to show he WHOLE WORLD is dependent on THEM...

[rifle]

[Yewheng]

http://www.straitstimes.com/BreakingNews/S...ory_696089.html

 

SINGAPORE is likely to be among the worst-hit countries in Asia should the United States default on its massive debts leading to a financial crisis, warned Credit Suisse yesterday.

 

This is because US banks account for almost 15 per cent of total domestic bank lending here, said the bank in a report.

 

In such a default cum credit crunch scenario, American banks would almost certainly withdraw their funds from the region, including Singapore, said Credit Suisse head of India and South-east Asia economics Robert Prior-Wandesforde.

 

'Should the US default and a credit crunch happen, it would make the fall of Lehman look like a picnic,' he added, referring to the collapse of Lehman Brothers investment bank in September 2008, an event that triggered the financial crisis.

 

US lawmakers have been locked in heated, partisan talks over raising a statutory limit on the US borrowings ceiling ahead of an Aug2 deadline.

 

If the US fails to raise this debt ceiling, it could default on its obligations - sending shock waves across global financial markets, said analysts.

[Porker]

The most print more USD and bail out another time.

 

Then USD devalues further. Import of energy commodities becomes more expensive. Cost of basic necessities goes up subsequently. Poor finds it tougher to sustain. Vicious cycle. Then BOOM!

[Scion]

read the below and you will understand more...

 

if US really partial defaults, it'd be most likely aimed at the Fed Reserve's 1.63t

(left pocket owes right pocket)

 

i also read from elsewhere, some ignorant people says... good if US defaults, because China will not get back their money

really amazed by their knowledge

 

 

 

Most of the US debt is held by the US citizens only. Foreign holdings of US debt is only 30% of the total debt. China and Japan combine holdings is 50% of all foreign holdings which means 15% of total US debt is held by US. Here are the some of the largest holders of US debt:

 

1. Social Security Trust Fund

 

Holds total of $2.67 trillion debt which is 19% of the total debt.

 

The Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds invest exclusively in special issue bonds that are only available to the Social Security trust fund. These are not publicly traded securities, but they still constitute a huge amount of debt.

 

2. The Federal Reserve

 

Holds total of $1.63 trillion of treasuries which is 11.3% of the total debt.

 

The Treasury owes the Fed $1.63 trillion in Treasuries, much of which were bought for the Quantitative Easing programs.

 

3. China

 

Holds $1.6 trillion of treasuries which is 8% of total debt.

 

China is the highest holder of US debt among the foreign buyers.

 

4. US Households

 

Holds total of $959.4 Billion of treasuries which is 6.6% of the total US debt.

 

Household sector includes Hedge funds too, so no surprise that the percentage holdings are high.

 

5. Japan

 

Holds $ 912.4 Billion of treasuries which is 6.4% of total US debt.

 

Japan happens to be the second highest holder of the US debt among the foreign holders.

 

6. State and Local Governments

 

Holds $506.1 Billion of US treasuries which is 3.5% of the total debt of the US.

 

7. Private Pension Funds

 

Holds $504.7 billion of US treasuries which is almost 3.5% of total debt.

 

8. United Kingdom

 

Holds $346.5 Billion of US treasuries which is 2.4% of total debt

 

UK is the third largest holder of US debt among foreign debt holders.

 

9. Money Market Mutual Funds

 

Holds $337.7 billions of US treasuries which is 2.4% of total debt.

 

10. State, Local and Federal retirement funds

 

Holds $320.9 Billion of US treasuries which is 2.2% of total debt.

 

There are other holders of US treasuries including Commercial Banks, Mutual Funds, Oil Exporting companies, Brazil, Caribbean banking Centers, Hong Kong.

Edited July 29, 2011 by Scion

[Yewheng]

Even if debt ceiling is raise.. this is what will happen..

 

 

I like the last part of what he says..

 

4:22min to 4:27min

 

"when music start playing, whoever has the most dollars loses"

Edited July 29, 2011 by Yewheng

[Windwaver]

Non of my biz but China can't sleep till then

[Itsec]

Even if debt ceiling is raise.. this is what will happen..

 

 

I like the last part of what he says..

 

4:22min to 4:27min

 

"when music start playing, whoever has the most dollars loses"

 

 

IMO... QE3 will implement.. and QE4 in 2012 (april - June) will also implement.. that's where no one wants to buy dollar.. Russia/China is trading via own currencies.. they are not trading via USD... and China has urged their people to keep at least 1oz of silver in each household..

 

when this happen, silver panda bear will shot up..and probably, this happens to other silver coins!!!

[Yewheng]

IMO... QE3 will implement.. and QE4 in 2012 (april - June) will also implement.. that's where no one wants to buy dollar.. Russia/China is trading via own currencies.. they are not trading via USD... and China has urged their people to keep at least 1oz of silver in each household..

 

when this happen, silver panda bear will shot up..and probably, this happens to other silver coins!!!

 

I hope not.. [:(]

[Itsec]

I hope not.. [:(]

 

 

then u start wondering why almost all commodities went up... many investors are looking for safe investments.. Euro chaos..USD devalue, and it will continue to do so... because this is what they want... remember ROME empire.. and u have show us video..and one of the videos had mentioned other currencies are safe to buy such as aussie / swiss francs.. (so buy silver coin from where )

 

i wont reveal much cos this is only frictional facts..

 

England rule for 2k yrs, US rule for 200 years (so US's time is up) Guess who's next??

Edited July 29, 2011 by Itsec

[Yewheng]

then u start wondering why almost all commodities went up... many investors are looking for safe investments.. Euro chaos..USD devalue, and it will continue to do so... because this is what they want... remember ROME empire..

 

i wont reveal much cos this is only frictional facts..

 

England rule for 2k yrs, US rule for 200 years (so US's time is up) Guess who's next??

 

I mean " I hope not" as in hoping there will not be QE4 or whatsoever or even very slim chance that there will be no QE3.

Edited July 29, 2011 by Yewheng

[Jasonjst]

then u start wondering why almost all commodities went up... many investors are looking for safe investments.. Euro chaos..USD devalue, and it will continue to do so... because this is what they want... remember ROME empire.. and u have show us video..and one of the videos had mentioned other currencies are safe to buy such as aussie / swiss francs.. (so buy silver coin from where )

 

i wont reveal much cos this is only frictional facts..

 

England rule for 2k yrs, US rule for 200 years (so US's time is up) Guess who's next??

 

China ?

[Itsec]

for those who worry.. start think else where.... check out those gurus...they are not lying.. read their books, validate their findings..

 

 

i'm buying and still buying... i mean physical silver.. not those stupid contract paper silver/gold/copper!!! i also hope silver drop to 1USD per oz.. and i will sell whatever i can.. probably my car, but definitely not house....grab all silver coins!!!

Edited July 29, 2011 by Itsec

[Itsec]

China ?

 

 

i keep the answer to myself.. the clue i gave is a clear hint... all u need to search n search the net...

[Good-Carbuyer]

As we know, our overprice properties are highly leveraged. In the worst case scenario of US default that carries on for a long period, I cannot imagine the consequences.

 

From my limited understanding, upon default, US banks will not be paid. In fact everybody Uncle Sam owes will not be paid. Vaults will empty. There will be a run on the banks to withdraw their money. The banks on the other hand will try to source hard currency from whereever they can.

 

Borrowing costs will skyrocket. Banks will recall all loans if possible. If you default on your payments, they will repossess your homes. Only HDB-loans will be safe.

 

Eventually money supply will tighten in Singapore and interest costs will rise. Now here is the kliller.

 

Economy grinds to a halt. Valuations plummet. Everybody will be sitting on negative equity. Banks will want you to recapitalise. Will MAS strenghten the S$ then to slow down the US$ exodus?

 

For the man in the street, no job, no $$ what happens? Will this scenario pan out?

I believe those who gone broke after gambling can appreciate from their experience, better than others

[Sabbie]

i keep the answer to myself.. the clue i gave is a clear hint... all u need to search n search the net...

 

Wow, you sound like a guru....you must be very rich!

[Fri13th]

NEW YORK -- (CNN) -- Speaker John Boehner's plan to raise the nation's the debt ceiling and slash government spending narrowly passed the House on Friday -- and then was blocked by Senate Democrats, setting up a weekend of negotiations to seek a deal that would avoid a potential federal default next week.

The Senate vote was 59-41 to table the measure, which effectively kills it unless Democrats decide to bring it up again.

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Print

Earlier, Boehner's proposal was approved by the House in a sharply polarized 218-210 vote that was delayed by a day while the speaker rounded up support from wary tea party conservatives. No Democrats supported the measure, and 22 of the 240 members of the Republican majority also opposed it.

Even though it was blocked in the Senate, the Boehner plan now is the Republican negotiating position for hammering out a deal with congressional Democrats and President Obama to avert a possible government default next week.

Friday's vote was a critical test of Boehner's control over his tea party-infused GOP caucus. The speaker was forced to quell a right-wing revolt over the measure after a number of members complained that it doesn't do enough to shrink the size of government and stem the tide of Washington's red ink.

Boehner, R-Ohio, managed to sway several of those members by including a provision requiring congressional passage of a balanced budget amendment to the Constitution before the debt ceiling can be extended through the end of 2012.

CNNMoney coverage: debt ceiling crisis

In his floor speech before the vote, Boehner called the proposal imperfect but necessary, and he criticized Obama and congressional Democrats for rejecting all deficit reduction measures passed by the House so far.

Democratic leaders vehemently object both to the balanced budget amendment and the requirement of a second debt ceiling vote before the next election. They argue that reaching bipartisan agreement on another debt ceiling hike during an election year could be nearly impossible, and that short-term extensions of the limit could further destabilize the economy.

Earlier in the day, Obama urged Senate Democrats and Republicans to take the lead in the congressional deliberations.

The House plan "has no chance of becoming law," Obama said at the White House. "The time for putting party first is over. The time for compromise on behalf of the American people is now. ... It's important for everybody to step up and show the leadership that the American people expect."

As the political maneuvering continues, the clock continues to tick down. If Congress fails to raise the current $14.3 trillion debt ceiling by August 2, Americans could face rising interest rates and a declining dollar, among other problems.

 

What could happen: Some financial experts have warned of a downgrade of America's triple-A credit rating and a potential stock market plunge. The Dow Jones Industrial Average dropped for a sixth straight day on Friday.

Without an increase in the debt limit, the federal government will not be able to pay all its bills next month. President Obama recently indicated he can't guarantee Social Security checks will be mailed out on time.

Leaders of both parties now agree that any deal to raise the debt ceiling should include long-term spending reductions to help control spiraling deficits. But they differ sharply on both the nature and timetable of the cuts. Republicans are seeking another vote on the debt ceiling before the 2012 election; Democrats call the demand a political nonstarter and economically destabilizing.

[Scion]

England rule for 2k yrs, US rule for 200 years (so US's time is up) Guess who's next??

 

 

 

England (or perhaps u mean the British Empire) ruled for 2000 years??? -_-