US May Face 'Armageddon' If China, Japan Don't Buy Debt

The US is too dependent on Japan and China buying up the country's debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC.

"It's almost Armageddon if the Japanese and Chinese don't buy our debt,” Robertson said in an interview. "I don't know where we could get the money. I think we've let ourselves get in a terrible situation and I think we ought to try and get out of it."

Robertson said inflation is a big risk if foreign countries were to stop buying bonds.

www.cnbc.com...

And they are stopping their purchases of bonds and debt. Many nations are now calling for an alternative to the US dollar.

When the dollar falls the nation will be in turmoil.

SO WHAT! Life goes on. If your smart you'll get a flower bed and start planting your veggies now buy a few chickens and self produce your food. When the dollar dies and people gt hungry you can barter. I find it sad that we get on these people for scare tactics when some of us here do it just the same. If our dollar goes money wont be in the top ten of everyones problems. I think survival will be. then all other threads would need to be directed to the survival board..HAHAHA! We are tooo small in this picture to worry about stuff like this. Life goes on with out us .Wether you have money or i have food is our responsibility. Watch out for number one I say. The dollar will not collaspe i have been trolling around this web site for a year about and the one thing i can say is that everything we predict never comes true. So wether the ideas are too crazy or subconsciencesly diverted they never happen. Thank ATS!

reply to post by itsallalie


Barter? What are the hundreds of millions of City folk going to barter with? Nice thought tho

Anyway, like you said, the dollar won't collapse. It will get weaker and weaker until a solution is found. The US is too big and important a country to be allowed to fail by the rest of the Developing/Developed world.

Once the Bailout money is all repaid and the stimulus spending is cut over the next few years, things will begin to look back up. The Dollar will still be a big currency, just not the dominant one.

The US will be down a good bit on wealth by the time all this is over though. I read a news article that said the US is down almost 20% of its wealth already, in comparison to the EU's 6% thats pretty harsh. With the dollar getting weaker, it will get a bit worse.

But If Obama can pass that healthcare bill, then at least you wont have to worry about your healthcare, it'll cancel the other out.

But then you'll all be dreaded socialists!

Oh the shame.

Originally posted by itsallalie
The dollar will not collaspe i have been trolling around this web site for a year about and the one thing i can say is that everything we predict never comes true. So wether the ideas are too crazy or subconsciencesly diverted they never happen. Thank ATS!

We've been on ATS for far longer. And actually the following has come true:

economic collapse (general time frame; in reinhardt's case, to the date)

pandemic (real or imagined, Alex Jones has warned againts getting the vaccine weeks before we've even heard of swine flu)

predictions in waiting:

assasination of Obama
WWIII
(fake) UFO invasion

There will be no dollar, it will be a world currency.

reply to post by Dermo


Nothing is too big or too important to fail, my good sir. The USA is nothing compared to the British Empire at the height of its power, and where are they now a century later? Reduced to its single island and the commonwealth. Ditto for France, for Spain, for Rome, for Greece, the list goes on and on.

All empires think they are too large or too important to die, but the reality is that time erodes everything and nothing can evade that. Not man, not empires, not history.

The US had a good run, our modern society had a good run, but everything is stagnant and change is coming. You might not want to believe it, but the situation has deteriorated enough that it doesn't matter what the other countries want, they can't hold the corpse together any longer no matter how hard they try.

reply to post by eldard


Alex jones is part of main stream media his checks come from the big dogs he made a guess and so what and as for the economy people were calling this a while back. I even thought it was getting bad when they tried to give my daughter a credit card and my friends credit card debt was higher than his salary. You cant live like that and i saw it coming. Now i am not proclaiming it predicted it but i new something was going to happen.

Ats has not predicted an event thank you.

It is true that we have been dependent for some time on China to buy our debt.

However, what would happen to all the bonds etc that they've already bought should they decide to shun the dollar?

They'd be hurting themselves as well, in my opinion.

Robertson said while he doesn’t think the Chinese will stop buying US bonds, the Japanese may eventually be forced to sell some of their long-term bonds.

“That's much worse than not buying,” he said. “The other thing is, they're buying almost exclusively short-term debt. And that's what we are offering, because we can't sell the long-term debt. And you know, the history has been that people who borrow short term really get burned.”

Hmmmmm.....

market-ticker.denninger.net...

again?

www.bloomberg.com...

The U.S. Secret Service is examining more than $100 billion of U.S. government bonds confiscated in northern Italy in August, just two months after $134 billion of allegedly fake securities were seized in a nearby town.

Goes a long ways towards unraveling the answer to "Were the bonds really fake and why, if they were, did the two Japanese men get released with the bonds and sent on their happy way?" doesn't it?

the Japanese may eventually be forced to sell some of their long-term bonds

Could this be re-worded for accuracy to say: "The Japanese have been attempting to quietly sell off their long-term US bonds?"

Whoops! Nothing to see here, please move along!

reply to post by itsallalie


Whether Jones is part of MSM or not is irrelevant. He did warn of something that's coming true now.

ATS did not predict anything. Members do that.