US debt default coming?



No.

Treasury has enough monthly revenue coming in to cover debt obligations.

What they don't have is enough monthly revenue coming to cover debt obligations, social security payment and the gas bill on Air Force One.

If the US defaults it's because the WH will choose to pay the salaries of government workers over repaying Treasury bills.

The U.S. Treasury will not default - Fundmastery Blog - MarketWatch
 
A US default would make the credit crisis of 2008 look like a tiny blip on the radar. All savings, 401ks, etc would be instantly revalued. The US would also lose its triple AAA rating which it probably should not have anyways. Don't know why the politicians think this is a cool topic to play chicken with.
 
Although the short term would be total fucking chaos, a financial ground-zero might not be such a bad thing for the US of A, in the long run. However, China won't let it happen. China has recently stepped-in to stop the EU from imploding. It needs the markets for it's cheap shit or it too will splutter. What does amaze me though, and a lot of people on this side of the pond, given the enormous financial gaps in the US, why the fuck spend trillions on unwinable wars.
 
The politicians and people on fixed incomes will not let the US default this way. The US will hyperinflate because that is always the politically correct thing to do. People are too stupid and selfish to simply default. They would rather inflate and do the slow burn approach. People would much rather live to see another day than face the cold, hard facts. So QE3 here we come.

No matter what we're finished. A default would be the best thing for us at this point, but like the past 40 years they are just going to throw more gas on the fire so the real default just absolutely devastates us. This is what happens politically. People don't have the balls to default. They will keep printing.

All they are doing now is getting the sheep a little fearful so when Bernanke comes around with his new plan to "save" the economy all the greedy, fixed income sheeple will rally behind him, all the while destroying the purchasing power of the dollar. We will most likely eventually default, but just not by choice. The people will not let it happen. They will beg the politicians to print more money.

Gold and silver anyone?
 
Although the short term would be total fucking chaos, a financial ground-zero might not be such a bad thing for the US of A, in the long run. However, China won't let it happen. China has recently stepped-in to stop the EU from imploding. It needs the markets for it's cheap shit or it too will splutter. What does amaze me though, and a lot of people on this side of the pond, given the enormous financial gaps in the US, why the fuck spend trillions on unwinable wars.

How else will the TSA have an excuse to touch peoples balls?
 
It might not matter even if a debt ceiling deal happens. S&P said that they may downgrade U.S. debt anyway. I listened to John Chambers of S&P this morning NY time talk about it. He's saying that unless the gov comes up with a plan to bring the debt/GDP ratio in line there will be a downgrade. So if a debt ceiling deal gets passed that doesn't fix the underlying problem the shit will hit the fan anyway since a lower rating means higher borrowing cost making debt grow faster. Add to that the domino effect on all the state and municipal holders of U.S. debt who are allowed to hold only the highest rated debt instruments. Plus all the blowback from private holders of U.S. debt both domestic and foreign.
 
yep... i would recommend anybody and everybody to change your fiat currencies for real money which has been gold and silver for the past 6000 years...

US dollar is coming down because of the Fed's reckless printing and mismanagement of the whole financial system...
 
Yo idk bros, I've been keeping an eye on this from the distance but know nothing of how this could/should be handled and what the consequences might be but I'm seriously starting to shit bricks at the thought of what might transpire in the event this should happen.
 
Although the short term would be total fucking chaos, a financial ground-zero might not be such a bad thing for the US of A, in the long run. However, China won't let it happen. China has recently stepped-in to stop the EU from imploding. It needs the markets for it's cheap shit or it too will splutter. What does amaze me though, and a lot of people on this side of the pond, given the enormous financial gaps in the US, why the fuck spend trillions on unwinable wars.

What does amaze me though, and a lot of people on this side of the pond, given the fact that you could quickly and easily find this information via a quick internet search, why the fuck does everyone think we've spent 'trillions' on iraq and afghanistan.

http://www.fas.org/sgp/crs/natsec/RL33110.pdf


Summary
With enactment of the sixth FY2011 Continuing Resolution through March 18, 2011, (H.J.Res.
48/P.L. 112-6) Congress has approved a total of $1.283 trillion for military operations, base security,
reconstruction, foreign aid, embassy costs, and veterans’ health care for the three operations initiated
since the 9/11 attacks: Operation Enduring Freedom (OEF) Afghanistan and other counter terror
operations; Operation Noble Eagle (ONE), providing enhanced security at military bases; and
Operation Iraqi Freedom (OIF). This estimate assumes that the current CR level continues through the
rest of the year and that agencies allocate reductions proportionately.
Of this $1.283 trillion total, CRS estimates that Iraq will receive about $806 billion (63%), OEF $444
billion (35%) and enhanced base security about $29 billion (2%), with about $5 billion that CRS
cannot allocate (1/2%). About 94% of the funds are for DOD, 5% for foreign aid programs and
diplomatic operations, and 1% for medical care for veterans.



While $128 billion a year for the last 10 years is no small number the financial crisis hasn't been around for the last decade either.

Bringing up war spending misses the WHOLE idea of this financial crisis.

It's like pointing to a paper cut on a man that has been shot in the head 5 times and going... "man he'd be a lot better off without that paper cut".
 
They simply need to cut spending and they wouldn't default, problem fucking solved. To bad most americans are a bunch of whiney pussies who can't take care of themselves anymore. They demand the government babysit them and do everything for them. Remember when independence was a good thing?

They are taking in SHITLOADS of money every single day in taxes. There is no shortage of money despite what this communist retarded criminal murdering pieces of shit the general population put in office say. No shortage what so ever, period. You can't expect a country that has very little exports to pay to "rebuild" countries that they paid to destroy? Yeah... thats fucking productive... Yeah... lets attack every country that doesn't have democracy... yeah... That sounds like a good fucking plan...

EVERYTHING has a fucking tax on it. Think of how many times a dollar is taxed. 30% on payroll each time it changes hands. TV tax, phone tax, real estate tax, fucking air tax. If you were to follow a dollar as it changes hands over and over again you will see that with all the taxes attached to it its worth maybe 02 cents if even that.

I can't believe how much I have grown to hate the "government" in the past year... Its insane to me how outrageously idiotic they are and it amazes me even more that people buy their propaganda bull shit. Fucking dumb idiots... man lol.

Revolution 2012 bitches. "Rebels"

/rant
 
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They simply need to cut spending and they wouldn't default, problem fucking solved. To bad most americans are a bunch of whiney pussies who can't take care of themselves anymore. They demand the government babysit them and do everything for them. Remember when independence was a good thing?

actually agree with you.

Although military spending has to be the first thing to go. Time to pack up and come home from around the globe and work on protecting our borders. Then start slashing welfare to next to nothing, with exception of seniors who are already dependent. Viola, spending under control.
 
They simply need to cut spending and they wouldn't default, problem fucking solved. To bad most americans are a bunch of whiney pussies who can't take care of themselves anymore. They demand the government babysit them and do everything for them. Remember when independence was a good thing?

They are taking in SHITLOADS of money every single day in taxes. There is no shortage of money despite what this communist retarded criminal murdering pieces of shit the general population put in office say. No shortage what so ever, period. You can't expect a country that has very little exports to pay to "rebuild" countries that they paid to destroy? Yeah... thats fucking productive... Yeah... lets attack every country that doesn't have democracy... yeah... That sounds like a good fucking plan...

EVERYTHING has a fucking tax on it. Think of how many times a dollar is taxed. 30% on payroll each time it changes hands. TV tax, phone tax, real estate tax, fucking air tax. If you were to follow a dollar as it changes hands over and over again you will see that with all the taxes attached to it its worth maybe 02 cents if even that.

I can't believe how much I have grown to hate the "government" in the past year... Its insane to me how outrageously idiotic they are and it amazes me even more that people buy their propaganda bull shit. Fucking dumb idiots... man lol.

Revolution 2012 bitches. "Rebels"

/rant

This and gold FTW! Konichiwa, bitches!
 
I can't believe how much I have grown to hate the "government" in the past year... Its insane to me how outrageously idiotic they are and it amazes me even more that people buy their propaganda bull shit. Fucking dumb idiots... man lol.


I don't think the state is dumb. I think they're driven by self-interest. For most of the Congress, that usually means getting votes so they can stay in office. For a few in Congress - namely, those who are well-insulated - it means jockeying for position.

For POTUS, the game is different. He wants votes (he already has position). But he needs to make sure he and others get paid along the way, long after his time in the White House is over. For example, when you hear that TSA gets billions in funding each year, and screws the pooch a lot, you know people are getting paid. Everyone from the guys heading the agency to the folks selling the scanners. Same with ATF, Acorn, DOE, etc.

It's not about POTUS. Nor is the problem partisan. The problem is the system that allows one citizen to vote another citizen's property for himself.

Oh, and a few of you might enjoy this piece:

Political Economy of Monarchy and Democracy - Hans-Hermann Hoppe - Mises Daily

It's long, but worth the time. Hoppe addresses the problem of self interest in rulers (problem for the ruled, not the rulers).


One more thing...


... lol at voters. Ya'll keep gettin' sold a bill of goods.


 
I don't think the state is dumb. I think they're driven by self-interest. For most of the Congress, that usually means getting votes so they can stay in office. For a few in Congress - namely, those who are well-insulated - it means jockeying for position.

For POTUS, the game is different. He wants votes (he already has position). But he needs to make sure he and others get paid along the way, long after his time in the White House is over. For example, when you hear that TSA gets billions in funding each year, and screws the pooch a lot, you know people are getting paid. Everyone from the guys heading the agency to the folks selling the scanners. Same with ATF, Acorn, DOE, etc.

It's not about POTUS. Nor is the problem partisan. The problem is the system that allows one citizen to vote another citizen's property for himself.

Oh, and a few of you might enjoy this piece:

Political Economy of Monarchy and Democracy - Hans-Hermann Hoppe - Mises Daily

It's long, but worth the time. Hoppe addresses the problem of self interest in rulers (problem for the ruled, not the rulers).


One more thing...


... lol at voters. Ya'll keep gettin' sold a bill of goods.


So what do you suggest happen? You've said the same shit over and over again but provide no real solution to the problems.