Thread: Vote IS US default a 'good' thing?

What are your feelings on the coming default?

As someone who has nothing to lose either way, I really don't care if the US defaults. It might be a good shock for America to rethink the ways things are going. I'm pretty much in the middle on things. I hate the extreme left and right. both sides are unrealistic and probably actually insane to some degree. I want taxes raised and programs cut across the board.

I really think this is going through. you can hear it. Even the progressive radio hosts I listen to see default and they suggest it might be a good thing like some of the rightwingers.

Change is good for the man who has nothing.

Originally Posted by Hampsha

I hate the extreme left and right.

You don;t have an extreme left in the US - only extreme right and not so extreme right.

I think the world needs to go back to year Zero and start all over again.
The Banks have fucked everything by lending to people who have no hope of paying it back.

If the US "falls" who will take it's place? Won't be Europe and there won't be a vacuum. It will be China.
So, take your pick - who would you rather have bossing you around?

IS US default a 'good' thing?

Hell no

Originally Posted by robuzo

I only wish I had bought more gold when it was 8,600 for one baht.

Me too but I will still buy it at today's prices.

Originally Posted by Blake7

If the US "falls" who will take it's place? Won't be Europe and there won't be a vacuum. It will be China.
So, take your pick - who would you rather have bossing you around?

China,,, Hell no way.

Ask all those folk who lost all their property
to the highway men.
Or those who protested in Tienanmen Sq.

Originally Posted by Blake7

If the US "falls" who will take it's place? Won't be Europe and there won't be a vacuum. It will be China.
So, take your pick - who would you rather have bossing you around?

I would take China. What do you think China would have done if Islamic terrorists knocked 2 of the tallest buildings in Beijing over ? I am guessing its going to happen.

They would nuke every muslim state to hell. Rather then try and make the socialists happy with nation building and bullshit.

Originally Posted by Humbert

Originally Posted by robuzo

I only wish I had bought more gold when it was 8,600 for one baht.

Me too but I will still buy it at today's prices.

I will too.

Originally Posted by Thormaturge

Higher interest rates equate to greater unemployment, more foreclosures, and more control of the economy returning to Wall Street. The middle class will be the ones to suffer.

For the wealthier members of the community it means higher investment income and consequently more money in the bank which they will do nothing with.

The best thing for the US is to default and let the old system crash and burn. Short term pain, long term gain. That is what Asia did in 1997 and now they are ahead of the game. And the bankers in Asia got shafted too.

After the 1997 crash, Thailands economy already started to improve in 1999.

-By 2001, Thailand's economy had recovered. The increasing tax revenues allowed the country to balance its budget and repay its debts to the IMF in 2003, four years ahead of schedule. The Thai baht continued to appreciate to 29 Baht to the Dollar in October 2010.

=The South Korean Won, meanwhile, weakened to more than 1,700 per dollar from around 800. Despite an initial sharp economic slowdown and numerous corporate bankruptcies, South Korea has managed to triple its per capita GDP in dollar terms since 1997. Indeed, it resumed its role as the world's fastest-growing economy—since 1960, per capita GDP has grown from $80 in nominal terms to more than $21,000 as of 2007

Originally Posted by Extreme Gape Lover

I think the world needs to go back to year Zero and start all over again.
The Banks have fucked everything by lending to people who have no hope of paying it back.

Been tried, ask Pol Pot how it paned out.

Originally Posted by socal

Originally Posted by Thormaturge

Higher interest rates equate to greater unemployment, more foreclosures, and more control of the economy returning to Wall Street. The middle class will be the ones to suffer.

For the wealthier members of the community it means higher investment income and consequently more money in the bank which they will do nothing with.

The best thing for the US is to default and let the old system crash and burn. Short term pain, long term gain. That is what Asia did in 1997 and now they are ahead of the game. And the bankers in Asia got shafted too.

After the 1997 crash, Thailands economy already started to improve in 1999.

-By 2001, Thailand's economy had recovered. The increasing tax revenues allowed the country to balance its budget and repay its debts to the IMF in 2003, four years ahead of schedule. The Thai baht continued to appreciate to 29 Baht to the Dollar in October 2010.

=The South Korean Won, meanwhile, weakened to more than 1,700 per dollar from around 800. Despite an initial sharp economic slowdown and numerous corporate bankruptcies, South Korea has managed to triple its per capita GDP in dollar terms since 1997. Indeed, it resumed its role as the world's fastest-growing economy—since 1960, per capita GDP has grown from $80 in nominal terms to more than $21,000 as of 2007

The problem I see with this is that the USA and Thailand have entirely different economies.

Thailand was able to recover because its markets, especially the USA, were still willing to buy its produce. If the USA fails I do not see there being a large customer willing to buy its products, but more likely a large predator wanting to buy up the entire country at bargain basement prices.

An American default would be a gift to the Chinese.

It'll be a national enema.

Originally Posted by Thormaturge

The problem I see with this is that the USA and Thailand have entirely different economies.

Thailand was able to recover because its markets, especially the USA, were still willing to buy its produce. If the USA fails I do not see there being a large customer willing to buy its products, but more likely a large predator wanting to buy up the entire country at bargain basement prices.

An American default would be a gift to the Chinese.

The IMF ensured that Thai (and Asian) banks had their financial systems properly regulated. Even after the mess that's been made by the lack of regulations in the US, they're still carrying on as normal. Staggering!

let's remind everyone that this is a "budget" default, that is a default because of a congressional dispute, not financial distress

basically they have the cash but they are not authorized to spend it because Congress won't allow it

it's funny to see how the confusion in the press and the public is associating this with some kind of end of the word bankruptcy

Originally Posted by Butterfly

let's remind everyone that this is a "budget" default, that is a default because of a congressional dispute, not financial distress

basically they have the cash but they are not authorized to spend it because Congress won't allow it

it's funny to see how the confusion in the press and the public is associating this with some kind of end of the word bankruptcy

The "congressional dispute" is over whether the US should increase its debt ceiling or remain within current constraints.

Without an increase the US will not have the cash to pay everyone.

The likelihood is that creditors and suppliers will continue to be paid, but either retirees, unemployed, or government employees will not.

The party is over.

Originally Posted by Thormaturge

The likelihood is that creditors and suppliers will continue to be paid, but either retirees, unemployed, or government employees will not.

The party is over.

army, navy, air force?

Originally Posted by Thormaturge

Without an increase the US will not have the cash to pay everyone.

but they have the cash, they are just not authorized to spend it

Originally Posted by Thormaturge

The "congressional dispute" is over whether the US should increase its debt ceiling or remain within current constraints.

exactly, it's a "political" limit and therefore a political default or political bankruptcy

the good news is that Obama can use some kind of emergency executive order to spend the cash and tell Congress "fuck you"

he won't do it though,

it's a political battle, not a financial one

Originally Posted by Butterfly

but they have the cash, they are just not authorized to spend it

Surely they are a debtor nation, a failed state. They have, at present, the ability to print more money but all that does is devalue the $ even more.