posted on Jun, 11 2006 @ 08:14 PM
posted by hessiantrooper
“ . . for the sake of interest, say the Dollar has fallen and we are thrust into a catastrophic depression. What will become of our credit card
debt . . Will men in black storm our houses to collect? [Edited by Don W]
Repossessing mortgaged property is usually done in anticipation of selling the distressed property at the auction block to recover some of the
otherwise uncollectible debt. If the economy is at the bottom, there will be no buyers and hence, not much urgency on the part of debt holders to
attempt to collect the hard way. Credit card debt will continue to earn outrageous interest until Jesus comes. Or we kill the !%*@# debt-holders.
I know, it's silly, but I get asked this all the time, and I need to know what I can start telling people when they ask me.
Tell them to quit voting for politicians who push the nation deeper into debt when the times are good. It’s one thing when times are bad, that’s
Keynesian economics a/k/a/ pump priming but when the times are good, it is inexcusable IMO.
posted by stumason
At the end of the day, the Government will have very little control over the market value of the dollar unless they took drastic measures, which in
themselves would harm the economy.
For a (very) short term response, the Government could declare the dollar has XYZ value and punish anyone who does not obey that edict. That might
work for a week or two at the most. The more likely scenario is the Weimar Republic response, to print more money. It is said a wheelbarrow full of
money was needed to buy a loaf of bread. And then came Hitler.
It could only take a couple of events and the dollar would plummet overnight, say the Oil producers switching to the Euro, or China and Japan dumping
some of their reserves . . [Edited by Don W]
Well, the Persian Gulf oil producers are in the same boat we are in. They own scads of property in NYC, W-DC, Miami, Las Vegas, Aspen and in all the
more exclusive enclaves in the Catskills and other high rent districts. It is not in their interest to see their own trillions of dollars of
investments go south! So, relax. It ain’t gonna happen.
[edit on 6/11/2006 by donwhite]