|
|
| Re: Boehner walks away, gives up on debt negotiations with Obama (814600) | |||
 |
|||
| 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 SMAZ on Sat Jul 23 00:08:56 2011, in response to Re: Boehner walks away, gives up on debt negotiations with Obama, posted by AEM-7AC #901 on Fri Jul 22 23:27:14 2011. The future of Occidental civilization doesn't depend on the United States.We chose to forfeit that role with our actions of the last 10 years. Less-idiotic nations like Germany, etc will take up that role. 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. We're not willing to pay for it. Expenses require taxes. The Europeans still have too many different goals within the respective national capitals Those differences are not a barrier to progress. They are not debating Evolution or birth certificates or voluntary debt defaults or eliminating old people's health care over there. They've got their priorities straight on the things that actually matter. 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 debt should have never been issued. Losing it or seeing others lose it allows people to be more level-headed and realistic in where they put their money. People thought they were making money in Greek debt because it had a 2 point spread over German bunds. The question is if US Treasuries go to AA status, what is left for funds to invest in that's still AAA and "safe", Nothing is safe. Nothing will ever be ever safe. People and institutions were putting money in US bonds on the idea that in an uncertain financial environment they could at least protect their principal without doing their homework on the kind of people that hold the power of the Purse. They didn't realize that Crazy took over last year. They should have invested in Australian securities or Swiss ones instead. and they are not suffering from a sovereign debt collapse. Iceland went broke, told the world to go fuck itself and started over. When it finally dawned on the losing investors and others that they weren't gonna get their old money back, banks and institutions were more than happy to lend since Iceland has basically wiped out all their pre-existing debt and have no problems meeting new debt payments. It's like lending to someone with no debt versus lending to someone who's credit card is maxed out and needs money just to pay his electric bill. Who would you lend to? Sometimes, you have to prevent people from acting stupid. And sometimes you must make their stupidity play out so that they can finally learn their lesson. |
|
|
|