12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy

A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before. If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations. A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented. And that would just be for starters.

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Call me fear-mongerer if you'd like but these events don't seem to be too far off. I'm not to keen on economics but things are sure looking bad for our nation's financial system. I keep asking myself, is this it?

reply to post by Kmhotaru


Yeah, I know... I need to know if congress and Obama are planning on crashing this on purpose or not. I was going to write a thread about something similar to this right now. I don't know how relevant it is to this particular one, but is this the start of a Civil War?

If we default, are we going to immediately enter warfare? Are both sides already getting ready for that? Any ideas? This could be very bad.

I think what Obama is trying to do is invoke a situation where he can get away with using the 14th amendment and get rid of the debt ceiling entirely. Which is why you hear rumors of Boehner saying he won't let default happen.

The problem with that is if this thing does go past the 17th and Obama does invoke the 14th amendment, you can pretty much count on the government being shutdown until after the 2014 elections.

I kind of question all the ominous warnings of what an American Default would be, seeing how most of it is newly printed money sold to other countries to shore up the global economy.

I'd be more worried about the foreign countries who got left holding the bag starting proxy wars against our Military bases in other countries.

My opinion of course.

Timing
I'd be more worried about the foreign countries who got left holding the bag starting proxy wars against our Military bases in other countries.

My opinion of course.

Proxy wars? I would go a step further, this is scary stuff.

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Also, there have been impacts of the government shutdown to my friends and family and to businesses already. One example is a friend of mine was not able to access water flow data for the private company he works with, another is my dad is a doctor and they just moved into a new building and let their I.T. staff go before the equipment was set up, my aunt and uncle work for the Center for Disease Control and got furloughed, etc.

If we default on our debt as well. . . this would be an absolute disaster. I don't even have a way to protect myself from that.

darkbake
reply to post by Kmhotaru

 

Yeah, I know... I need to know if congress and Obama are planning on crashing this on purpose or not.

They have no control over it now, it IS going to happen soon and nothing can be done to stop it.

It goes back all way to the year 2000. That was the year we were supposed to have a moderate sized recession. Instead of allowing it to happen Greenspan thought he could stop it, all he did is make it much worse. Everyone else who has had power over the situation has made it worse because telling an unpleasant truth is not the way to get reelected or have a good legacy.

Just like any lies, the more desperate you become to hide the truth the worse the result when it comes out.

Other countries will collect one way or another if default happens. If there are rumors that Boehner is saying default won't happen why are we worried about it? I am not seeing where he said this. What I am hearing is that they won't back down because what they are asking for is minimal - and to not negotiate is rediculous.

I respectfully think what the house is asking for is reasonable - give us a plan to reduce spending and put Obamacare on hold until you even understand what this will mean for people. That is not that hard to concede to. I mean if someone asked me to put my agenda on hold to help billions of people - no hesitation. Truly - what is the problem?

reply to post by darkbake


Proxy Wars because those countries don't want to risk a nuclear showdown...



reply to post by Dianec


It really isn't a problem and what they are asking for is minimal and reasonable, but you can't really reason with people who have constantly stated in public that "they won, the ACA is law, now get over it." Eventhough they lost the House.

That is also why I believe Obama has the alternate plan of invoking the 14th amendment. While congress could pass a new debt ceiling even after he has raised it, the republicans are going to need a 2/3's majority in each chamber in order veto his veto.

Scary stuff indeed.

It appears they may do a temporary debt ceiling increase. However, toward the bottom it appears they have all made decisions to sacrifice the most poverty ridden to lower the debt over the next 10 years.

TextThe aide said the savings would come mainly from “mandatory” programs. Those generally refer to Social Security, Medicare and Medicaid, the benefit programs for retirees and for the elderly and poor to receive healthcare.

www.freemalaysiatoday.com...

And of course Obama is willing to negotiate (talk about) anything they want if they just give him what he wants first. I'm sick over the amount of manipulation in this government. Most of these guys are intelligent human beings - highly educated critical thinkers. I saw stunned looks during the Syria debate, "are you for real - and your running the show?" I am imaging them now - with this sort of negotiating going on. Mouths open wondering - "really - that's the best you have?"

reply to post by Dianec


Well, what sense would it make to let the stock market crash and let the Federal Reserve go bust and letting all that mass transfer of wealth from the middle and poor classes of the country to the wealthiest in the world do if all the gains were wiped out?

Either way more pain is coming for the lower classes of the country. The only way to payback the debt that the Federal Reserve and Wall Street have placed on us is to raise taxes and cut benefits.

Now, I wonder when the benefits get cut I wonder if some of those big time philanthropist will focus more of that cash flow to the American people and Nation Build America instead of Africa.

Dianec
Other countries will collect one way or another if default happens. If there are rumors that Boehner is saying default won't happen why are we worried about it? I am not seeing where he said this. What I am hearing is that they won't back down because what they are asking for is minimal - and to not negotiate is rediculous.

I respectfully think what the house is asking for is reasonable - give us a plan to reduce spending and put Obamacare on hold until you even understand what this will mean for people. That is not that hard to concede to. I mean if someone asked me to put my agenda on hold to help billions of people - no hesitation. Truly - what is the problem?

The problem is what the OP is alluding too. This isn't a mistake. It's pre-planned.

reply to post by darkbake


I think it is worrisome that some members of Congress have actually used the term "civil war" to describe the animosity that they have internally toward one another. I also think that the only way to get a New World Order is through a collapse of America. That said, they typically like manageable collapse situations, so I really don't see a total collapse taking place overnight ... willingly. They'll probably string it along until people become desperate enough financially to accept a new currency or some other "solution." They know that an armed America with 350 million people in chaos is a major problem that is nearly uncontrollable. I guess we'll know in about two weeks to see how they decide to resolve this debt crisis. Don't forget, too, they were threatening "martial law and blood in the streets" back in 2008 if Congress didn't do as they were told. They eventually did as they were told.

However...

People are seriously waking up and becoming desperate and defiant. This truckers' protest coming up could be a very big event. A massive truckers' blockade -- or a nationwide strike if they are treated violently by authorities -- could shut down the economy in about 10 minutes. To me, that is the biggest possible overnight change that could take place. Stock up on whatever you can. I hope people can realize that it is not their neighbor who is the real enemy here. If people "get" that in time, then a civil war is not possible under any circumstances. For the criminals running things? Well...I'd hate to be them.

reply to post by Kmhotaru

Why are all these government shill using the same Lehman Brothers talking point?

First of all, the US has already defaulted in the past. It was labeled the Nixon Shock.

He declared a bank holiday and simply told the world that your US dollars are no longer convertible to gold but dont worry. You cash is backed by the "full faith and credit of the US government", haha.

"If we miss an interest payment". God forbid we miss an interest payment to the Federal Reserve!? Oh noes!!!

And then theres THE BOSS:

reply to post by Timing


I hear ya. And one of the things the republicans want is no tax increases. Reduce the deficit, no tax increases, and hold off on obama care for a year. That sounds absolutely doable. But professor know it all and those who agree with him do not see that as feasible as it harms their vision. Your right - we will suffer no matter what - unless ultra wealthy. Will get a few doggie treats now and then to keep people tame.

tracehd1

Dianec
Other countries will collect one way or another if default happens. If there are rumors that Boehner is saying default won't happen why are we worried about it? I am not seeing where he said this. What I am hearing is that they won't back down because what they are asking for is minimal - and to not negotiate is rediculous.

I respectfully think what the house is asking for is reasonable - give us a plan to reduce spending and put Obamacare on hold until you even understand what this will mean for people. That is not that hard to concede to. I mean if someone asked me to put my agenda on hold to help billions of people - no hesitation. Truly - what is the problem?

The problem is what the OP is alluding too. This isn't a mistake. It's pre-planned.

Thank you for the feedback but I read the entire OP statement, the article, and the entire thread. I still don't know what why it would be a set up. What is the motivation to crash the economy and endorse untold suffering of the people - world wide? I only read what such a thing would cause. Maybe I'm overly tired but if you can expand maybe I missed something - probably something obvious too.

reply to post by Dianec


There is more money to be made from crisis, war, fear and desperation than there is from peace, love and understanding?

And there always has been. It's the tragic flaw of our civilization.

0zzymand0s
reply to post by Dianec

 

There is more money to be made from crisis, war, fear and desperation than there is from peace, love and understanding?

And there always has been. It's the tragic flaw of our civilization.

I can take that as an explanation. Maybe not a civil war - which would be unlikely but yes...I'm quite sure such a disaster would give those who have invested is us a reason to take back, and maybe this would start a war. I am thinking that the American people would overthrow the government if this were allowed to happen though. It would hurt them somehow.

I know many representatives have given up their salaries to show respect for other federal workers. Whether this is just for show I don't know. But they are people too - and they can't all be greedy horrible monsters. However, the ones who are take most of the power since corruption is what it takes to keep their game going.

We already see the psychological toll this has taken. By the day it gets worse. I am not sure it will take until the 17th to see damage done.

proximo
Just like any lies, the more desperate you become to hide the truth the worse the result when it comes out.

It is a lot like lies, which is funny, that really compares our country to Babylon.

Whats that betting site where people make large wagers on future events and what not?
Whats the name of that investment you can make against certain rates, Soros just did it.
We all know Congress, and most of DC Elite, play the markets to grow their wealth. They can avoid being payed in a scenario like this because 300+ are already millionaires in their own right. However, i can bet you if their money is just sitting in a bank its not a U.S. one.

So what bets are being made, what investments are spiking right now instead of falling? If the Shutdown lasts until the treasury dept's "expiration date" then how much money can be made from the chaos specifically? And from where?

Oh, and didn't we just become the top oil exporter in the world? If Oil is the key to great wealth, where the great wealth going and for what?

reply to post by Kmhotaru


funny how the release of the new bill coincides with this budget mess.
in countless news reports about the new $100 that came out this week, they say " Fed's budget is not included in the current congressional appropriations stalemate." of course it isn't affected.... it isn't a government agency.

The case was stated many centuries ago-
"Quos Deus vult perdere, prius dementat"-
"Those whom God wishes to destroy, he first makes mad".

This is the United States trying to commit suicide.
if you survive this, you need to change the constitution and end the separation of powers.
Having two different groups of people spending the money and raising the money is asking for trouble.