No Way U.S. Would Allow Debt Default? Don’t Bet on It - NYT

reply to post by darkbake


My husband and I are to, he gets his military pension at the end of the month, while so far we are secure when it comes to the military pension, SS, Medicaid and medicare, those on disability and welfare are no so lucky.

Now, remember US never have defaulted on its debt, I don't see happening this time around.

And you don't want to see DC mall full of welfare people mad because their checks and cards are not working due to a government shutdown or default.

No in the best interest of the US politically as a power.

marg6043
reply to post by darkbake

 

My husband and I are to, he gets his military pension at the end of the month, while so far we are secure when it comes to the military pension, SS, Medicaid and medicare, those on disability and welfare are no so lucky.

Now, remember US never have defaulted on its debt, I don't see happening this time around.

And you don't want to see DC mall full of welfare people mad because their checks and cards are not working due to a government shutdown or default.

No in the best interest of the US politically as a power.

Ok - it is not a real choice to deny a problem exists. It does not matter if it is in our best interests.
All you are arguing for when you say don't allow a default is put off the problem and make it worse a year or two from now. It is the cowardly thing to do, and will not change the result only make it worse. The only people it helps is the people that die in the meantime, and the only ones it punishes are the children who had nothing to do with creating the problem.

As far as it hasn't happened before so it won't happen now - well we have never been remotely this in debt before so the situation has never been similar, and things happen all the time that never happened before. That is just a worthless argument.

Yes people are going to be very pissed when they get cut off - it does not matter, anymore than if you scream at an empty piggy bank - money will not suddenly appear in it because you are angry.

reply to post by proximo


You are missing the bigger picture here, the default is not about welfare checks and neither pensions, it goes farther than that, it means a collapse of the entire global economy that is soo intertwine with US.

Is a bigger picture here than just some people no getting benefits, it will impact the entire world.

reply to post by darkbake


Here is a link I thought would be relevant concerning this thread. I think senator Ron paul sums it up very well.





Thruthseek3r

marg6043
reply to post by proximo

 

You are missing the bigger picture here, the default is not about welfare checks and neither pensions, it goes farther than that, it means a collapse of the entire global economy that is soo intertwine with US.

Is a bigger picture here than just some people no getting benefits, it will impact the entire world.

No, I'm not missing that point at all. Collapse of the global economy is already guaranteed, only question is when.

You seem to be of the opinion that it can be stopped, if you understood how utterly screwed the banking system and nearly every first world nation is, than I think you would change that opinion.

BABYBULL24
Heard 90% of volume on the NYSE is done by computer bots - flash trading. It's all computers so of course they can crash that thing by a push of a button. Which I'm sure Obama will do if he doesn't get his way. It's totally rigged - what happened to all those day-traders killing it in the market?
They don't exist anymore if they ever did.

They still exist, but even 'day traders' are largely using algorithms now. Anybody who isn't is probably just making trades very infrequently. Like, somebody's Grandma bought some Microsoft 20 years ago, and a couple years ago she sold some to buy some Apple, and mostly she just holds onto what she buys.

Big money uses the fastest computers. In the time it takes Grandma to hit the 'buy' button and for her purchase to go through, a day trader's algorithm can do say 10 trades. But the big banks get direct access to the exchange's own computers and use ridiculously powerful and expensive computers and their algorithm can do say 1000 trades in that same amount of time. So they are so fast that they can in effect have time to skim money off of 1000 Grandma's or even a 100 day traders. They see Grandma saying 'buy $100' and a day trader saying 'sell $99' before any other daytraders or Grandmas can even see those offers, and so they instantly buy the stock for $99 dollars from the day trader and sell it to Grandma for $100, just to grab that dollar.

Here is what happens to the market if the politicians think they can get away with it and so make the US default on it's debt like the bankers want them to do:

A default means higher interest rates and therefore higher debt payments. Money currently in stocks will then have to leave the stock market to cover the increased debt payments. Stock prices will drop. The drop will be larger than necessary simply to cover higher debt payments both by rational chain reaction (i.e other real consequences) and by irrational panic.

The same net creditors who want a default to force rates higher will be the ones buying the stocks debt holders were forced to sell. 'Quantitative Easing' aka money printing will them 'come to the rescue' except it will be used to pump up stock prices after the net creditors have already bought a pile of stocks for a low low price.

The challenge for the little guy is to hold on to his stocks etc and find other ways to cover his higher debt payments until asset prices have been pumped back up by QE.