Great interview on our current economy: "Debt Default Imminent"

Another week has gone by and lawmakers still can’t figure out what to do with the debt ceiling. As the country comes closer to crashing into that daunting 14.3 million dollar mark, is a default imminent?

Euro Pacific Capital President Peter Schiff says it is a rouse that we are even discussing defaulting at all at this point. According to Schiff it’s inevitable, and if Congress was actually concerned that it wouldn’t happen then they would be frank about it.

Schiff says that the president and Congress should tell the people that “we will be honoring our debt” and that America will make cuts elsewhere. “But that’s not it!” says Schiff. He says that the best thing the country can do is not raise the debt ceiling, and if lawmakers are really conference about deficit spending, then “the only way to stop it is to stop it dead in its tracks.”

“These are only just excuses,” he adds.

According to Schiff, the talks of defaulting are only being used by lawmakers to justify raising the debt ceiling. But if we default? No big deal. “We are going into another recession regardless,” he says.

He also adds that America defaulted before in 1971 and the country managed to survive.

Schiff notes that defaulting isn’t an automatic consequence to not raising the ceiling, but with the Congress and the president refusing to come up with a plan, default seems only more and more likely.

Schiff says that America can eliminate the debt ceiling all together and that the entire debt will have to be restructured if the country wants to avoid massive inflation. In the meantime Schiff says that “anything that diminishes the appeal of the dollar will impact the United States.”

rt.com...

Video at link here

tomorrow is imminent...august 2nd isn't imminent. they are all going to grandstand til august 1st. and then pass a compromise that nobody likes and blame it all on Obama.

all a bunch of drama queens in Washington. its all about them don't ya know!

If they can't raise the debt ceiling that is a good thing... If the deadline passes without it, they will be forced to cut spending.

It's a good thing.

Personally, I hope they don't agree on anything and let the cuts happen by default.

The deadline passes and they have no room for agendas and debates... The cuts will be swift, deep and widespread, and they will all FEEL it.

Pray they can't resolve this one... of you are so inclined.

Fresh news

US budget: No new deal in White House

Talks at the White House to try to break the deadlock over the US national debt have broken up without agreement.

President Barack Obama and congressional leaders have agreed to resume the talks, which ended after 75 minutes, on Monday. Mr Obama is struggling to marshal support for a budget package that would cut the national debt by $4tn (£2.5tn). The US risks defaulting on its debts in just over three weeks, when the current federal budget runs out. Eight top Senate and House of Representatives leaders met - unusually - on a Sunday in the Cabinet Room of the White House. As the talks got under way, Mr Obama was asked whether they could "work it out in 10 days". "We need to," he replied.

www.bbc.co.uk...

I believe the sticking point is 1.3 trillion in tax revenue that the Republicans refuse to budge on. Slaves to the wealthy and big corporations til the end.

I would just like to hear the explanation by Boehner and the Republicans on why they exactly refuse to end a 10 year long tax cut (that was supposed to end two years ago) on the wealthy.

But Obama will get the blame, no doubt.

There was a house for sale for $30,000 and this family moved into it. It was found out that they didn't have a job but somehow got a mortgage for $180,000 on that $30,000 house. They put a little money into the house and lived off of their mortgage for a year or two.....now they are trying to sell the house for $190,000.

It's only worth $30,000.


Multiply that by a hundred million lazy thieves in America that did the same and robbed us blind.


Then add the 15 million illegals that got mortgages and did the same since they were given mortgage starting in 2005.....they all fled with their money from buying and selling homes between themselves. Hence why south of our border is BOOMING...that's where all our money went.


We've been robbed....we're still getting robbed right now.

reply to post by Pervius


You've been robbed of nothing. Those were magik money from Starfleet replicators. They were'nt real. These are not the bills you are looking for.

Originally posted by Pervius
There was a house for sale for $30,000 and this family moved into it. It was found out that they didn't have a job but somehow got a mortgage for $180,000 on that $30,000 house. They put a little money into the house and lived off of their mortgage for a year or two.....now they are trying to sell the house for $190,000.

It's only worth $30,000.


Multiply that by a hundred million lazy thieves in America that did the same and robbed us blind.


Then add the 15 million illegals that got mortgages and did the same since they were given mortgage starting in 2005.....they all fled with their money from buying and selling homes between themselves. Hence why south of our border is BOOMING...that's where all our money went.


We've been robbed....we're still getting robbed right now.

assuming this is a hypothetical situation?? Your house for a mortgage has to meet a certain minimum percentage of the mortgage/refi loan taken out, which is around 80% of the value of the loan if I am not mistaken.

You can't take a mortgage out for six times the value of the property.

(you can however, mortgage a 180,000 house, and have it devalue to 1/6th the amount which is a much more common occurance, if not quite that extreme)

even if the debt ceiling is not raised... there will not be a default because our central bank, the Fed
will just issue moe printed money or just virtual money generated by digital placement of decimal points... making the $100.00 US Treasury balance magically turn into $1,000,000,000,000.00


besides even if a theoretical default were to become real on paper..
the world will not recognize anything different with the approximately $100 Trillion in USD that circulate throughout the global community...
the USA has flooded the world economies with USDS that have become a major intregal part of about 25% of the developed nations and 40% of the second tier nations...


The USD is not backed by the full faith of the Govt... but rather by the full force of its nuclear arsenal
consider the new policy of allowing the 1st use of NATO nukes in a desperate crisis

Am I missing something? Is the issue here paying down our debt? Or are they talking about needing more money for things?

I mean for gods sakes if your talking about saving money to pay down the debt, pull the friggin' troops out of these two pointless wars. Right there alone you save BILLIONS of dollars. Enough is enough. These idiots in Washington are playing games with real American's lives, not only in Iraq and Afghanistan, but by dumping all of this debt on our backs, our children's backs, our grand-children's backs, etc etc etc. All the while we are involved in 2 wars and the whole debacle in Libya.

I'm 35 and I can see this as being a solution. Are you telling me these old bastards in Washington DC can't see this?????

Obama should get on TV tomorrow and say "we can't raise the debt ceiling so in order to save money we are bringing all US troops home."

We owe debt on our own money that was loaned back to us by the evil cabal of private banks called the Fed. In addition the Fed bought the fictional debt with money it created out of thin air. This is all a scam to raise taxes and screw the working man & woman even more! Peace.

Originally posted by St Udio
even if the debt ceiling is not raised... there will not be a default because our central bank, the Fed
will just issue moe printed money or just virtual money generated by digital placement of decimal points... making the $100.00 US Treasury balance magically turn into $1,000,000,000,000.00

Yeah, I was thinking this. It's not like the dollar means anything anymore anyway. It's not like having a $10 bill means you have $10 worth of gold, or anything else real or tangible. The "economy" is a joke - why NOT just print more money at this point.....wouldn't be any more stupid than we've done already.

Originally posted by Skerrako

Another week has gone by and lawmakers still can’t figure out what to do with the debt ceiling. As the country comes closer to crashing into that daunting 14.3 million dollar mark, is a default imminent?
.”

The above emphasized typo is really telling, imo. It has been 167 years since the USA had a federal debt under 14.3 million dollars. It has been 172 years since the USA actually didn't owe any debt, that being the era in which they finally paid off the debt from the Revolutionary War.

I say let it default! At some point, this assinine song and dance must end, and if it takes smashing the record player to hell to end it, so be it. The US has a unique opportunity here. No nation has ever just outright gane from solvent to default without putting themselves through years of the IMF's austerity/self immolation process. Thus, the handfull of nations which have truly defaulted on their debt, were in a hell of a lot worse shape than the US is currently in at the time of said default. Also, the USA is still (regardless of what some on ATS parrot) the world's top economy, has the world's largest military, is the 3rd most populous nation on Earth, and is still the known center of the economic & commercial world. Does anybody really believe that that will change overnight? The austerity process the IMF pushes isn't intended to help a country, it is intended to be a controlled devaluation of a struggling nation's leveraged position in the world. Said country goes through several rounds of bailouts and austerity actions while the international corporate world deleverages their positions within that country to prepare for the certainty of a future default. In other words, all the people & nations that country owes money to can afford to abandon them in the wake of the pending default when all is said and done. If the US government wasn't the globalist puppet they are, they would simply allow full default to occur.

What exactly is the downside here? The US is the world police, after all. If a creditor nation opted to take the US to international court, what's the end result? The US orders their own troops to serve papers on the US? Not likely. Yes, it would be shifty and it would increase hatred of the US worldwide if they took this route, but at this point I'm inclined to shrug my shoulders and say "so what?"

reply to post by St Udio


Good thing China can now shoot down satellites. Becoming only the 3rd nation on Earth with the capability to do so. Go China!!!