1) In a sense the Fed has been defaulting on debt over the last 100 years by inflating away the value of the principal due. So it is already a matter of policy for the US.
2) Inflation would hit hard! There are 3x as much USD in foreign hands as there in the US. All those dollars would come back flooding in the market. The .99c can of corn would be $3 nearly overnight.
A default would result in a money warp. I would want to have gold and silver as a back up. Stocks in companies that have solid products and balance sheets and are not over valued would probably also be OK since these could be valued in any currency.
The problem right now is that everything is overvalued due to the FED-driven bubble finance.
"The son-in-law of presumptive Democratic presidential nominee Hillary Clinton is reportedly closing a hedge fund he started that bet on a Greek economic revival but lost around 90% of its value."
I don't know whats worse-- People treating a Clinton relative or the Greeks. I am laughing at the people who gave these criminals money, but it wouldn's suprise me this is simply a payoff.
So the options are for $20 Trillion in debt: deflate, default, inflate, and war. Good stuff, unfortunately to many people don't understand the s-storm that is coming. Sure we can use other peoples money, but eventually it runs out (or the printing press runs out of ink). The EBT card riots and looting from the card shutoffs would be interesting until the first bullet rings out. Plan accordingly.
We cannot and will not ever pay off the national debt. It will drain our resources (payments on the debt) for years maybe decades if we do not take some action. Sooner or later we will deny the debt or default on it or some other action that amounts to the same thing. A more elegant solution would be to simply "print" (not really print anything of course) the money and buy back the debt. Do it overnight or over a weekend in secret and without recourse. The debt holders get paid and are presumably happy, the new debt owners are the U.S. government and since it was paid off could simply be retired or the bonds burned or whatever. Result in one fell swope the debt is eliminated and no default/bankruptcy. It would be the perfect act of a presidents last days in office.
Why default? Use the government's ignored mandate to issue the nation's currency instead of borrowing it from a private bank -- yes, the Fed is privately-owned -- and simply pay the foreigners and the Fed with the new money, which would become the only American money accepted as legal tender. Then the task becomes monitoring the creation/elimination of money from the economy as required to keep the economy running smoothly. The money is NOT the basis for the strength of the economy, it is merely the medium of exchange for the activities that are that basis.
There's another thing that you left unaddressed, from the intersection of economics and politics: The Constitution. It prohibits nullification of the debt. Doesn't mean it won't happen, but it means a shitstorm of litigation and other hilarity will ensue. Oh, and that Military which is supposed to prevent anyone from collecting? They've sworn to uphold and defend that very same constitution. If nullification ever looks like something that might feasibly happen, buy popcorn futures.
8 comments:
Two points --
1) In a sense the Fed has been defaulting on debt over the last 100 years by inflating away the value of the principal due. So it is already a matter of policy for the US.
2) Inflation would hit hard! There are 3x as much USD in foreign hands as there in the US. All those dollars would come back flooding in the market. The .99c can of corn would be $3 nearly overnight.
A default would result in a money warp. I would want to have gold and silver as a back up. Stocks in companies that have solid products and balance sheets and are not over valued would probably also be OK since these could be valued in any currency.
The problem right now is that everything is overvalued due to the FED-driven bubble finance.
"The son-in-law of presumptive Democratic presidential nominee Hillary Clinton is reportedly closing a hedge fund he started that bet on a Greek economic revival but lost around 90% of its value."
I don't know whats worse-- People treating a Clinton relative or the Greeks. I am laughing at the people who gave these criminals money, but it wouldn's suprise me this is simply a payoff.
shitacularly stupid bullshittery made my morning.
So the options are for $20 Trillion in debt: deflate, default, inflate, and war. Good stuff, unfortunately to many people don't understand the s-storm that is coming. Sure we can use other peoples money, but eventually it runs out (or the printing press runs out of ink). The EBT card riots and looting from the card shutoffs would be interesting until the first bullet rings out. Plan accordingly.
We cannot and will not ever pay off the national debt. It will drain our resources (payments on the debt) for years maybe decades if we do not take some action. Sooner or later we will deny the debt or default on it or some other action that amounts to the same thing. A more elegant solution would be to simply "print" (not really print anything of course) the money and buy back the debt. Do it overnight or over a weekend in secret and without recourse. The debt holders get paid and are presumably happy, the new debt owners are the U.S. government and since it was paid off could simply be retired or the bonds burned or whatever. Result in one fell swope the debt is eliminated and no default/bankruptcy. It would be the perfect act of a presidents last days in office.
Why default? Use the government's ignored mandate to issue the nation's currency instead of borrowing it from a private bank -- yes, the Fed is privately-owned -- and simply pay the foreigners and the Fed with the new money, which would become the only American money accepted as legal tender. Then the task becomes monitoring the creation/elimination of money from the economy as required to keep the economy running smoothly. The money is NOT the basis for the strength of the economy, it is merely the medium of exchange for the activities that are that basis.
There's another thing that you left unaddressed, from the intersection of economics and politics: The Constitution. It prohibits nullification of the debt. Doesn't mean it won't happen, but it means a shitstorm of litigation and other hilarity will ensue. Oh, and that Military which is supposed to prevent anyone from collecting? They've sworn to uphold and defend that very same constitution. If nullification ever looks like something that might feasibly happen, buy popcorn futures.
-Red Knight
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