If the US cancels the debt, the rest of the word is fucked. However, world powers would still have to deal with us.
It's a sleazy move but it might be our only option.
I'm thinking the same thing you are. There simply might be too much debt to recover from and with all these extra 900 billion+ bailouts it might hurt the United States status as a reserve currency.
Originally Posted by EightBallOriginally Posted by EightBall
The only thing "Made in the USA" would be things produced by Financial Engineer's. We've let our manufacturing sector and pretty much everything else die. We've become a greate place to outsource call centers to and a great place to open a fast food joint but actually making things to help get out of debt ... that is another story.
Originally Posted by Henchy432Originally Posted by Henchy432
That would not really be an option. It would result in a lot of bad will. We might not ever be able to sell our debt to anyone again; we would probably never become a superpower again. The more realistic option is simply to print more money that is what all other countries do at least if my memory is correct. Look at what happened with Zimbabwe. There is a reason they are printing 100 trillion dollar bills.
Last edited by Kevin Shiel; 02-05-2009 at 10:24 AM.
Other counties would still have to deal us. It's true, that no one would buy our debit. However, by defaulting the other counties we owe would then have debt of their own. Maybe giving the US a chance to bounce back. Printing money is bad idea. It lower the value of our dollar to third world levels.
If the US dollar does collapse I am safe. I've been converting all my savings to Euros and Canadian Dollars as soon as I get it.
and Iceland being quite recent in memory.
War only stimulates economy because government spending goes up (every dollar that's put into the system is worth more than a dollar in the end). The stimulus bill is supposed help in that aspect.
... but there's one problem. Where exactly does the money for all this come from ? It *should* come from taxes, but as most people know, a lot of that money is borrowed and adds to the crazy debt. No offense, but americans really, really need to stop complaining about taxes and how it equals socialism (it does not, btw). Out of the industrialized nations, americans have one of the lowest tax rates.
As I said in my previous post, america almost certainly will not go bankrupt. The powers-that-be do not want a destabilized world, and will do everything in their power to keep america afloat.
Still, good job on converting into canadian dollars =)
We (yes, i'm canadian eh) have one of the most stable - if not THE stablest - financial system right now; it's because our banks were extremely conservative and did not dive into those crazy new-fangled mortgage-backed securities. Out of the top 17 banks right now in market capitalization; Canada has 5 (!) Considering how specialized/localized our banks are, for them to be competing with giant national banks around the world is quite the feat.
in b4 tl;dr
But... but... but.. America needs to maintain its toys until it has chosen the next terrorist...But I also see that no one have mentioned about the American military/Army
which should spend more then China/Russia and Whole Europe combined