default

I'm battling a raging cold at the moment and having some pretty lucid dreams.

In my latest 'trip' I was watching sport on TV when the broadcast was interupted with the breaking news that the US had defaulted on it debt...it was across all the news wires. At first I punched the air and yelled "YES"!...then it sank in and as I began to so "Oh, Shi..."

I woke up! :/
 
They'll kick the can down the road, they always do @_@

Expect a market rally on sentiment and no fundamentals.
It's good for the traders, but not so great for long-term holders.
 
Well the big three already have them on a negative outlook so maybe they aren't bluffing? Default means almost automatic down grade.
 
samboyellowsub said:
Its like a family deeply in debt deciding whether or not to apply for another credit card or not.
Click to expand...

Although in this case if the family is struggling to pay the bill they can print some of the money to help themselves out.
 
The thing is that a lot of investment vehicles have regulations saying that they must only invest in AAA investments. (from back in the days when Rating Agencies weren't a rubber stamp collusion with Wall Street). They have already said they will downgrade USA if it technically defaults.

This means that when midnight hits, all those funds will immediately start selling their 'solid' US Bond investments and that will trigger other computer programs that work on algorithms and so a sell-off will occur. Inside that noise, nervous bond holders like China will start dumping and so it goes.

The alternative is that Obama will risk impeachment by acting unilaterally and that would mean business as usual for Wall street, and the rest of the world, and political death for Obama.

The big danger is that a big player will say 'I'm not risking default' and sell. It could be one hedge fund, one country, or even a popular swell of housewife investors in Japan. That would then trigger the algorithms. That is the wild card the pollies are playing with.

Some of the Republicans elected on the 'no more debt/small government' platform , could easily hold fast against Obama - some of them oppose the teaching of Evolution so a little matter like international finance to keep their constituents happy won't be an issue.

They will raise the debt ceiling - they always have done - but the wild cards are those algorithms and the unpredictability of human behaviour. That is why this 'arrogance of Rome' is so dangerous.
 
Well said JulieW. I hope a sell off does occur actually. Will be some great buying opportunities then.
 
JulieW said:
The thing is that a lot of investment vehicles have regulations saying that they must only invest in AAA investments. (from back in the days when Rating Agencies weren't a rubber stamp collusion with Wall Street). They have already said they will downgrade USA if it technically defaults.

This means that when midnight hits, all those funds will immediately start selling their 'solid' US Bond investments and that will trigger other computer programs that work on algorithms and so a sell-off will occur. Inside that noise, nervous bond holders like China will start dumping and so it goes.

The alternative is that Obama will risk impeachment by acting unilaterally and that would mean business as usual for Wall street, and the rest of the world, and political death for Obama.

The big danger is that a big player will say 'I'm not risking default' and sell. It could be one hedge fund, one country, or even a popular swell of housewife investors in Japan. That would then trigger the algorithms. That is the wild card the pollies are playing with.

Some of the Republicans elected on the 'no more debt/small government' platform , could easily hold fast against Obama - some of them oppose the teaching of Evolution so a little matter like international finance to keep their constituents happy won't be an issue.

They will raise the debt ceiling - they always have done - but the wild cards are those algorithms and the unpredictability of human behaviour. That is why this 'arrogance of Rome' is so dangerous.
Click to expand...


"Give me control over a nation's currency, and I care not who makes its laws." M.A. Rothschild
Printing money is the only way out!
Who cares if it makes no sense in the long run? Who cares if it will end in catastrophe? It has to be done or all these things will happen NOW rather than (preferably much) later. The "solution" has always been so simple. Just give the Treasury permission to borrow more and keep on doing that forever. What is there to worry about? Don't examine the nature of the "system". Don't concern yourself with any type of eventual debt repayment. Don't trouble yourself to examine this madness at all. And what does it accomplish? It keeps power over the people in the hands of those who have long since taken it for granted. What would happen? The US government could go on borrowing and spending through the election year of 2012. After that, they'd have to do it again. At some point, what is being borrowed and spent would totally lose its effectiveness as a medium of exchange. This is what they see in Washington now, and as this bleak fact becomes ever clearer, Washington and Wall Street stand helpless before the fact that they can only cure the economy at the cost of killing the financial system which is feeding on it. It's that simple.
This is the first time in the fiat-money era they are giving thought to the prospect of actually holding back their spending. The mere fact that this has entered the debate is the major factor in its chaotic nature and in the seeming inability of US politics to make a deal. Both sides stand horrified before the sudden realisation that their powers of borrowing and spending are not infinite. The make-believe that a government can go on borrowing and spending forever has hit the wall. Wall Street doesn't believe yet it but US politicians do. That's why the impasse continues.
 
JulieW said:
some of them oppose the teaching of Evolution so a little matter like international finance to keep their constituents happy won't be an issue.
Click to expand...

Whoopsi, a crack in your fairness zone, your pettycoat-prejudice's are showing.

Rand Paul -
"I have a message a message from the Tea Party. A message that is loud and clear and does not mince words. We've come to take our government backfrom the special interests who think that the federal government is their own ATM.This Tea Party movement is a message to Washington that we're unhappy and that we want things done differentlyThe Tea Party movement is about saving our country from a mountain of debt that is devouring us."
http://washingtonexaminer.com/blogs.../rand-paul-s-victory-speech-message-tea-party


An interesting quote from King World News:

"And I compare it with the government we have today. It's too bad that the US is now led by men whose chief desire is to be re-elected. I doubt if the Founding Fathers ever planned it that way. Today we need men who are ready to sacrifice their sacred honor and their wealth to run the nation. This may be the fatal flaw in Democracy. We lack men of great character. We lack men and women who will die for the honor of making this a great and better nation."
http://kingworldnews.com/kingworldn...Market_is_Saying_Bernanke_to_Print_Money.html

Yes if only committed atheist leaders could put aside survival of the fittest long enough not to feather their own nests and the building of their personal reputation, before they cease to be; or would that just prove that they were not fit to survive?

I don't have faith in evolution.
Below we see what I take as an admission that evolution is not based on observable science, but an atheists 'beliefs'.

http://www.youtube.com/watch?v=cHvrZbWRVhA&feature=related
 
fiatphoney said:
Yes if only committed atheist leaders could put aside survival of the fittest long enough not to feather their own nests and the building of their personal reputation, before they cease to be; or would that just prove that they were not fit to survive?

I don't have faith in evolution.
Below we see what I take as an admission that evolution is not based on observable science, but an atheists 'beliefs'.

http://www.youtube.com/watch?v=cHvrZbWRVhA&feature=related
Click to expand...

Not_sure_if_serious_small.jpg
 
We are watching an Empire collaspe.

Happened before & will happen again.

All fiat $ collaspe in 40 year cycles.

It is now OVERDUE for USA.
 
boneyard said:
We are watching an Empire collaspe.

Happened before & will happen again.

All fiat $ collaspe in 40 year cycles.

It is now OVERDUE for USA.
Click to expand...

I am curious where you got that information. We always read/hear that all fiat currencies eventually collapse, but I have never seen a specific time period/deadline.
 
As I don't understand USA politics and maybe watched too many USA films showing backstabbing and greed - politicians will do anything to remain in power ( in the movies ), I ask myself why the man in charge - Obama - needs to seek the response of the Republicans. I thought the Democrats were in power so they should make the moves.

As for the comments on AAA ratings etc just remember Lehmann Bros were AA+ or higher rated by S&P just before the SHTF and Lehmanns collapsed owing billions to suckers like me that trusted AAA ratings - it all stinks out there so keep stacking.
 
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