There will be no default on the U.S. debt. Here is why

There will be no default on the U.S. debt. Here is why

This fella says it won't happen.

He says all the money is just bank issued paper.

And he says the tax revenue income is enough to survive.

He says they can fix it !!!!

How ? Spend Less !!! and issue 'different' money.

He says 'bank money' is 97% of the money supply.

"The borrower is servant to the Lender"

Will Democrats go for that one ?

Published on Oct 6, 2013

The government shutdown will end but there is no way that the United States will default on its debt. Talk of default is just a fear tactic.

There will be no default on the U.S. debt. Here is why

reply to post by xuenchen


I don't think this guy understands modern monetary theory. What he advocates is a deflationary tactic that would increase the real value of debt- making it more burdensome and reducing available capital for economic activity- so dumb right now.

reply to post by sjorges2002

Plus, some of us have already stopped paying taxes.
More to follow, I promise.

That said, there will be no "default".
We will see hyper inflation and collapse. But you cannot default on debt you create from thin air.
If people dump our BS, that is on them.

The rich are about to become the only ones who survive. And I mean the ultra-rich.

The rest of us need to be learning how to barter.

The 1% are already working on plans to move to the next developing nation in a semi-tropical climate...

reply to post by xuenchen

Bill Still? Why didnt you say so?

S + F.

Now everyone go watch Money Masters.

No, I'm serious. Go. NOW!!!

But the US has already defaulted once. It was called the Nixon Shock.

The US simply said, no more gold standard for you. Wanna convert your dollars to gold? Too bad, get lost.

Thats when we went to the "full faith and credit of the US government", lol.

reply to post by gladtobehere

Or otherwise known as when we went to petrol dollars.
Our currency is backed with blood.
Its more real than gold.
Drop it and die.

I don't agree, but its real.

Its all Toilet paper anyways......

Hell, I think TP is worth more......

Its softer!





Debt limit. Its all a joke.

gladtobehere
reply to post by xuenchen

 

Bill Still? Why didnt you say so?

S + F.

Now everyone go watch Money Masters.

No, I'm serious. Go. NOW!!!

But the US has already defaulted once. It was called the Nixon Shock.

The US simply said, no more gold standard for you. Wanna convert your dollars to gold? Too bad, get lost.

Thats when we went to the "full faith and credit of the US government", lol.

edit on 7-10-2013 by gladtobehere because: (no reason given)

Yep !!

They summed up the financial *cough* collapse with the article on the Basel *accords*.
[ “mark-to-the-market.” ]

BASEL I. In 1988 a faceless, unelected group of bankers met in Basel, Switzerland at the Bank for International Settlements (“BIS”) – the “Central Banker’s bank” which even Swiss authorities may not enter – and in their “Basel I accords” agreed to a set of minimum capital requirements (8%) for banks. This was a number fine for some banks, but higher than what was in place for France and especially Japanese banks. To raise more capital to reach the 8% level, French and Japanese banks had to reduce loans, causing a recession in France and a depression in Japan, one from which Japan has never fully recovered.

BASEL II. In 2004, the same group met and agreed to Basel II (“The Return of Basel I”)– which required banks to value their capital based on market values, or “mark-to-the-market.” These rules were approved for the US on November 1, 2007. The declining housing market set off a chain reaction due in part to Basel II which banks knew was coming and constricted credit in anticipation of. The next month, December, 2007 the stock market collapsed and the Great Recession began in earnest. This should have been no surprise to the Japanese, nor to the BIS bankers. Full implementation of Basel II was subsequently delayed in the US until 2009. Basel II has been blamed for actually increasing the effect of the housing crisis as banks had to reduce lending to increase their capital as the value of mortgages they hold declined. This produced a downhill snowball effect on home prices and then on nearly everything else as lending and the economy contracted.


THE MONEY MASTERS
impose
BASEL I, II & III on an unsuspecting world
Central Bankers’ Basel III scheme will worsen Worldwide Recession

reply to post by xuenchen


The U.S. will not default on its debt. Technically.

Payments on treasury securities will still be payed, even if the U.S. fails to raise their debt ceiling.
At least that's the answer the Chinese government got when they warned the U.S. not to threaten the value of their "investments".

Still, the GFS's-markets are merely based on confidence and the U.S. gov. shutdown sure doesn't make them look strong in any way.

Also, remember the cost for just lingering in 2011.

*ETA:
-Regarding the video-
Anyways, it is generally a good idea to re-nationalize your currency and practice a little austerity.
(where is my *tumbs up* emote?!)

reply to post by JayinAR


I'd say the .1% are doing that. The majority of 1% still likely think nothing bad can happen to them- they probabaly think they run the SHow.

reply to post by xuenchen


I'm not much of an economist, ( the subject tends to bore me ),
but wouldn't there be a way to 'short sell' on the global economy
to such a degree that it would also counteract the lowered value
of money on a global scale (due to a global reserve currency
devaluation and higher interest rates among other things
I'm not educated about).

So if the global economy does predictably 'slump' due to default,
couldn't we follow the money and see who got rich from this?
Wouldn't that show who the PTB are?

I'm curious whether there are 'mad men' who think this way, and
whether they might be trying to make such a move?

Or else, certain politicians would sell their mother's soul to the
devil for 1 more bit of influence and wealth, and all this melodrama
is not in fact part of a carefully orchestrated plan, but pure human
madness.

I really don't know at this juncture.

KPB

We are just delaying the inevetible.

The dollar is trash and there are other currencies/empires ready to carry on.

That realization will come soon.

No, you as the people have to spend MORE. Otherwise, the economy will come to a grinding stop - in the nearest future!

reply to post by xuenchen


"Only one person got this right" that is because even though it is a good idea, that doesn't mean congress is going to even know about it, also, let alone agree on it in time. The legislation has to pass through a lot of hoops.

Let's say congress does all of a sudden decide that they want to do something about the default. So right now it is October 7th, that gives us 10 days, only 8 working days. Let's say they decide that they need to do something about it in 4 days, leaving them 4 days, and then find out that they don't have enough time to get the paperwork done. It could happen.

Another reason they won't default... the printing press.

They just print more money.

But the best reason is they are a bunch of control freaks,. They love lording it over people. Power trips can be more addictive than money. You can only spend so much money, but power over others... that has no limits.

Why end that gravy train?

Ahhh, some people to squeeze and hear their pain.