The Treasury would owe the debt unless the Fed cancelled it for them. Ron Paul has already floated the idea of cancelling over 1 Trillion in US Treasury debt that is on the books of the Federal Reserve. Presto Chango, no debt, just massive amounts of USD. That also avoids the debt ceiling problem. Obama doesn't like this option because Paul is a 2012 Presidential contender and it would not get Obama through until the election day without another debt ceiling battle. Sad to think that we can't get by on an extra Trillion for more than a year.
People will be largely scared of fiat currencies, commodities will do well, gold and silver will do the best. I stick by my belief that gold and silver physical and shares will go higher, like the 30's.
1929 stock market crash Number of Unemployed (without jobs) approx 1929 1,500,000 1930 4,400,000 1933 12,800,000 'The great Depression'
...my 1 oz worth.....I don't believe America is going to allow a SHTF situation to happen. They will shore up their finances and create support for the USD, even if just for the short term in order to to allow a market recovery of sorts. How they will do it who can say, they do have a couple of options. An agreement will be reached before the 'deadlne' Aug 2 or they can kick that date down the road too and it will halt/pause the negative outlook. I don't see any immediate change to our situation ..i.e silver going to the moon just yet. I do however see this current spot surge as another wild ride (short one). An opportunity to sell some stack for profit, swap some stack for gold, buy some stack today and sell it tomorrow for a quick buck etc. For me I am waiting for the run that will push silver spot pass $50.00. I believe it needs to break thru there (higher than the last peak) to prove that a signifcant change in the market is on. For now I am enjoying the ride I am not seriously buying anything at the moment but some of the items offered here in the trading thread have me a bit itchy. I wish yennus would stop dangling those panda's in front of me
That my friend is not like a default. If a country HAS to have debt written off in order for it to maintain it's finances that IS a default. If that were to happen there would be an instant downgrade and probably by a lot. Maybe not junk status but the Fed better get use to printing and buying treasuries because no one else will be buying them.
Damm Ag i had to look up what Repudiation mean't in the context of this discussion. Thats called hitting the nail on the head..Nailed it in one REDBACK
"IN GOD WE TRUST" printed on US bills .... is a desperate wish maybe the next round of bills will say "GOD HELP US ALL"
Whatever happens from here on, no matter how the US tries to get around the debt problems, I think a lot of confidence has been lost in the US dollar, just the word 'default' must be making countries like China rethink about buying any more US debt. I think the US dollar will be downgraded soon and then SHTF!
The thing that irritates me is how blatant and a grand scale those that are bankrupt are using technicalities to avoid harsh reality and responsibility. It sends a signal from the top down to others that its ok to do whatever is necessary to stay in business when the point of no return is well and truly passed.
Madness is doing the same thing over and over again expecting a different result, except if you are in "finance" or in "business"?
Blatant is the right word - I watched 'Inside Job' on youtube last night (in 8 parts). If you want to get angry watch that documentary. Every American should watch this not just once but many times to realise just how the rich are ripping them off and getting away with it again and again and still walking away with their millions of dollars of bonuses. Why there aren't riots in the streets right now I don't know! Yes Bernanke and Obama - keep printing the money and keep bailing them out and watch the rich get richer and the poor get poorer!
Goldpanner, I AM ANGRY. I am angry at the liars, scabs and thieves that dictate to others how life will be. That they think they are entitled to lie and cheat and steal in the murky shadows of the finance industry by slipping through loopholes and weaknesses covering up paper trials, forging and back filling forms, exploiting the ignorant and naive public. They wear fancy business suits looking professional talking gibberish and made up jargon. They are white collar criminals living a lavish lifestyle in a blue collar world at our expense!
Systematic Yes they are the real criminals of this era and it looks set to worsen, they are actually being rewarded for all their corruption with the governments and bankers all part of it - I understand now why revolutions get going. The whole system has to change completely!
If you wanna get real angry watch The Obama Deception. pretty eye opening stuff about the Bilderberg Group and there "plan". Its got me the most when carbon tax was mentioned!
Ive watched Endgame and its just scary, everything they talk about i can see it happening around the world from carbon taxes to codex alimentarius to the war in the middle east to internet censorship and police state-ism and more I hope so bad that the general public wake up and do something before its too late, even though its already to late really
Sometimes i think we are all just puppets on a stage pulled by cosmic strings. If and when enough of the general public wake up and have the collective fortitude .... there will be hell to pay ...
The problem is that no matter who is put into a position of power they usually get corrupted after a while even if they dont start out that way, the temptations are too great or they have to bow down to powerful factions. Greed is part of human nature. Therefore the rise and fall of governments will keep happening - I suppose the corruption and gap between rich and poor gets so bad eventually that the poor rise up against the rich, big upheaval or revolution, then the next system develops. Unfortunately it is always the ones at the bottom that get hit the hardest. Even if this 'end game'plays out over a few years the high inflation is going to hit the poorest people hardest as they are the ones with the biggest percentage of their income going to buy food, we can already see the rise in the price of food even here in Australia.
It won't be until public officials are being strung up in post office square by angry mobs that anything will change. It'll have to be so bad that those lackies behind the officials (including the police) that protect them, realise they're being screwed as well, stand back and let their masters be held to account. Until the public 'grows a pair' nothing's going to change. And if you seen what people around the world accept as OK.... it'll be a long time before anything changes. Better to look after your own interests in the meantime. cough "PM's" cough.
How is the USA going to pay the $14 trillion back? They can't tax the people as the people have no money? They can't borrow more because one party won't let them and even if they did, it will only delay the outcome for a little longer. They could bring all the troops back from the wars, close down some overseas military bases but I don't think that would go down well with the arms industry or the military brass. The only possible way that I can see is to sell the gold at Fort Knox (no audit for last 50 years) so that may not be an option. One last way. HYPER Inflation..Thats the way to go! Up the inflation to 1000%..Down goes the US $ but you can pay the debt off quite easily. The US Government could do it at 100% Inflation over 10 years. It's all over RED ROVER.. I may well be wrong but I look forward for a financial explanation of how it is possible to pay back this amount of debt when the total tax income of the USA government is 25%. The banks should have not received bailouts. The money should have gone to USA citizens indirectly by rebuilding the railways and other projects that provided jobs.. It's a sad world when even the super rich have to rely on the government to retain their wealth..They be all the same , all over the world,I tell you. Regards Errol 43
