|
|
| Re: Boehner walks away, gives up on debt negotiations with Obama (814571) | |||
 |
|||
| Home > OTChat | |||
|
[ Read Responses | Post a New Response | Return to the Index ] |
|
||
|
Re: Boehner walks away, gives up on debt negotiations with Obama |
|
|
Posted by AEM-7AC #901 on Fri Jul 22 23:27:14 2011, in response to Re: Boehner walks away, gives up on debt negotiations with Obama, posted by SMAZ on Fri Jul 22 23:15:00 2011. Occidental civilzation has survived far worse things than government defaults.We barely made it through 1929 to 1945. I question our ability to do so again. What it will mean is the end of the superpower status of the US. Which is something I'm not personally looking forward to. It's expensive, but it's arguably necessary for the stability of the globe as we're the only Occidental nation with the economies of scale to even remotely support such a large and powerful military. The Europeans still have too many different goals within the respective national capitals, and quite frankly, I don't trust the Chinese. And a voluntary one at that since markets still loan the US at less than 3% on a 10-year note. Actually, one problem that this may cause is that a lot of state and municipal bonds have credit ratings and rates based on that of US sovereign debt. So the question remains if these lower levels of government will see the same easy credit policies and well, and the effect upon their ability to service their debt. Regardless, some have argued that the problem is that there's simply far too much money seeking far too much in terms of easy and high returns, hence the bubbles that have developed in the real estate and mortgage backed security markets, and some would now even argue that sovereign debt is the next bubble to burst as there's no way for all of this debt to be repaid. The question is if US Treasuries go to AA status, what is left for funds to invest in that's still AAA and "safe", and that's if we'll have a banking system left. People will say Iceland survived, but that place has nearly the same number of people as Staten Island, so it's a drop in the bucket, and they are not suffering from a sovereign debt collapse. This is what we chose. In November, the People spoke. The people will now reap what they sowed. Sometimes, you have to prevent people from acting stupid. |
|
|
|