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2008-09-22 Home Front Economy

Default by the US government is no longer unthinkable

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Posted by Anonymoose 2008-09-22 00:00|| || Front Page|| [10329 views ] Top

#1 Yeah, and an asteroid could come hurtling out of the blue tomorrow and destroy the planet completely. Neither one is likely.

If the U.S.G. defaults, the world's money markets are gone for good. It would hurt us terribly and the rest of the world worse. There would be governmental collapse in a great many places. The items of most value would be guns, ammo and canned goods.

Not going to happen.

Posted by Jolutch Mussolini7800 2008-09-22 02:37|| 2008-09-22 02:37|| Front Page Top

#2 Governments don't default on debts in their own currency (they do default on debts in other countries currency, gold or when they introduce a new currency). They print money.

Which says to me we in for a period of asset deflation and consumable inflation.

Posted by phil_b 2008-09-22 07:16|| 2008-09-22 07:16|| Front Page Top

#3 " The items of most value would be guns, ammo and canned goods."

Uh-huh. Been at the top of my list for a while now. Do you really think these shysters have not contemplated defaulting ? Look at their play now. Would it cause world-wide upheaval and possibly a world war ? Probably. Think they care ?

Posted by Woozle Elmeter 2700 2008-09-22 10:27|| 2008-09-22 10:27|| Front Page Top

#4 The U.S. Naitonal debt is $9,671, 430,687,608.40 as of this morning.
The estimated population of the United States is 304,774,370 so each citizen's share of this debt is $31,733.08.
What has this money been used on? Do we want to add a trillion on to it for these douche-nozzles on Wall St? How much can we borrow before it ruins us? Or has it already hurt us irreparably?

Posted by bigjim-ky 2008-09-22 10:28|| 2008-09-22 10:28|| Front Page Top

#5 There's always the Zim-Bob model. I guess he doesn't have to sell T-Bills.

Posted by Bobby 2008-09-22 12:49|| 2008-09-22 12:49|| Front Page Top

#6 bigjim-ky: The six parts of the US budget are, in order,

Medicare & Medicaid (21%),
Social Security (21%),
Defense (20%) ,
Interest on the national debt. (9%)
Other Discretionary (18%), and
Other Mandatory (11%)

We have to have Defense spending.

Posted by Anonymoose 2008-09-22 13:41|| 2008-09-22 13:41|| Front Page Top

#7 Remember the total world burden of credit default swaps (CDS's) is in the neighborhood of $62 trillion, but no one knows for sure -- the CDS market is unregulated & unmonitored. CDS's are contracts where one party agrees to pay another if certain financial conditions are met, i.e., the swap is a bill that may need to be paid by someone to someone.
The Masters of the Universe who invented & propagated schemes like CDS's were really just Sorcerer's Apprentices. I strongly suspect the world CDS market will collapse long before the US Gov't needs to worry about defaulting.

Posted by Anguper Hupomosing9418 2008-09-22 13:56|| 2008-09-22 13:56|| Front Page Top

#8 The government's focus on short-sellers was an attempt to divert attention from the highly-levered hedge funds in drag that now comprise our banks and brokerages. The reason these banks and brokerages haven't been reined in is because they're gambling with exotic instruments that regulators have decided should remain regulation-free, instead of the highly-levered bets with plain old futures and options that Long Term Capital took. The problem with non-regulation of banks and brokerages is what just happened last week - if anything bad happens, the government is on the hook, because of the vast numbers of voters negatively impacted.

Posted by Zhang Fei 2008-09-22 14:48|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2008-09-22 14:48|| Front Page Top

#9 #3: " The items of most value would be guns, ammo and canned goods."

I reload Woozle, and have enough to get by, no way to provide 20 years of canned goods, not rich enough, and no warehouse available.

Posted by Redneck Jim">Redneck Jim 2008-09-22 18:39|| 2008-09-22 18:39|| Front Page Top

#10 Perhaps we should each invest in grain, vegetable, and spice seeds, and a small mixed herd of sheep. Just make sure the ram is heterosexual, and all will be well.

Posted by trailing wife ">trailing wife 2008-09-22 18:56|| 2008-09-22 18:56|| Front Page Top

#11 And rain barrels.

Posted by lotp 2008-09-22 19:25|| 2008-09-22 19:25|| Front Page Top

#12 And rain barrels.

With suspenders.

Posted by Spaish Flomble3461 2008-09-22 22:44|| 2008-09-22 22:44|| Front Page Top

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