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What will happen when the US defaults on the national debt?

Discussion in 'The Okie Corral' started by rock_jock, Feb 14, 2013.

  1. Atlas

    Atlas transmogrifier

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    China has been converting very large sums of foreign currency (mostly dollars of course) into... all things tangible.

    Gold, silver, copper, iron, aluminum, coal, land and businesses in the U.S., Africa, and South America, high-tech/high-value machinery and equipment (which they then set about reverse-engineering and copying for use in their domestic markets), and on and on.

    They are doing so as quietly and carefully as possible, in order to avoid further devaluation of THEIR dollar holdings.


    The Chinese are in it for the long term, they have enough history as a people to understand the long view of world affairs while we remain preoccupied with the next fiscal quarter.
     
    Last edited: Feb 15, 2013
  2. arclight610

    arclight610

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    Well said.
     

  3. Geko45

    Geko45 Smartass Pilot CLM

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    There will never be a day of "default" for the U.S. on its debt. The worst possible scenario is an Argentinian style economic crisis (which would certainly not be fun), but there will not be any invasions by foreign powers or descent into a Mad Max style anarchy and there definitely won't be an abolishment of the Federal Reserve.
     
    Last edited: Feb 15, 2013
  4. Glock20 10mm

    Glock20 10mm Use Linux!

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    Argentina... should give you a good idea.
     
  5. mgs

    mgs Always Carrying Millennium Member

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    You can't eat Gold.....cut off wheat and corn to them. They'll need clean water soon also.
     
  6. mgs

    mgs Always Carrying Millennium Member

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    Agree. Could happen.
     
  7. Snaps

    Snaps Hail 2 The King

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    my guess, nothing. Nothing at all
     
  8. SouthernRaider

    SouthernRaider

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    Hardly.
     
  9. Restless28

    Restless28

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    Tagging FerFAL. It's been awhile since he's been here. I wished that he would show up.
     
  10. Flying-Dutchman

    Flying-Dutchman

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    If hyperinflation wipes out the savings of most people, someone will have to pay.

    Just like when the Twin Trade Towers fell, someone had to pay and they did.
     
  11. SouthernRaider

    SouthernRaider

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    Pension plans, banks, SS, Medicare, the fed, all have balance sheets stuffed full of govt debt

    If they fully default all that goes to zero........ And unleashes a little problem known as credit default swaps.

    So nothing isn't an option . There is bad, really bad, and the book of revelations.
     
    Last edited: Feb 15, 2013
  12. Glock20 10mm

    Glock20 10mm Use Linux!

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    I've been posting his story and stuff when ever appropriate...
     
  13. SouthernRaider

    SouthernRaider

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    You prepared to work in a real economy? One based on real production of coal, beef, rice, and timber?

    This funny money economy based on debt, healthcare, and wal mart will reset to something most are not prepared for.
     
  14. yellowlabsrule

    yellowlabsrule

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    We will have to change our name to The Republic Of China.
     
  15. badge315

    badge315

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    Collection agencies will be auto-dialing the White House day and night. :whistling:
     
  16. Glocksanity

    Glocksanity

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    Welcome to reality.

    The Banksters run the show, including the networks, the politicians, religions, and the war machine. This has been going on for millennium.

    And the Banksters are run by....the reptilians! But times they are a changin. Hang on tight. It's going to be a wild ride.
     
  17. Beware Owner

    Beware Owner NOT a victim.

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    We will be taken over by the U.N.
     
  18. Snaps

    Snaps Hail 2 The King

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    Wrong
     
  19. SouthernRaider

    SouthernRaider

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    So you think the US can just default on its funny money debt and nothing will happen?
     
    Last edited: Feb 17, 2013
  20. devildog2067

    devildog2067

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    Just because you don't understand something doesn't change its value. There are lots of "real" things other than "coal, beef, rice and timber"--both real services, and real manufactured goods. The US is at the forefront of making both.

    Debt, in basically its modern form, has been around for six hundred years. Economies have been based on them since there have been what we think of as "economies."

    The fact is, things are going to be bad, but not Mad Max bad. We're going to continue to have inflation. People with incomes fixed in nominal dollars are going to get hammered. We're not going to default on our debt.