America's Apocolypse ...... America's debt ...

[Chief Bones]

America's Apocolypse ...... What happens if America's debt becomes so large, that the rest of the world refuses to accept America's promissary notes???

Because of the fight that is developing on Capital Hill over America's newest money woes, the very real spectre of America defaulting on her loans and debts looms ever closer. Lets face it, the latest Standard and Poor's (SAP) grade for America's economic standing just a few days ago, raises a scary picture where the rest of the world might very well refuse to loan America any more money.
S&P Cuts U.S. Ratings Outlook to Negative
http://tinyurl.com/4yg4x6b for a list of reference sites,

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What happens to America .. to the governmant and to the economy if America loses it's SAP AAA grade, and the rest of the world refused to buy our 'paper' (promissary notes)??? Without money, the government crashes and so do American markets (and jobs).

Quote:
What I forsee, would be foreign companies that own the promissary notes foreclosing on federal property to offset monies owed to the person/government that owns the promissary note .. and .. then taking over any American company that owes foreign governments import taxes for material that was shipped to a foreign market. The first thing that would be seized, are assets that are on foreign soil and then assets that are in America.

You might ask how this wouild be done .. and .. the answer is very simple. They would use America's own courts to seize assets (including property owned by the US Givernment), leaving the courts for the very last Federal property to be seized.

By the time everything was said and done, the government would no longer exist (you can't have government if the ONLY thing you can do is to print money that is worth exactly nothing). Let's face it, the ONLY reason our money is worth ANYTHING, is because foreign sources, continue to buy America's promissary notes.

That isn't a pretty picture from where I sit.

The ONLY thing that can pospone or cure the problem, will be for America to get it's government and economic situation under control. Nothing else is going to permanently keep the wolf away from America's doorstep.

BTW - we never did discuss what would happen to state governments if the above scenerio came about ... or ... what affects/effects would transpire in ANY businesses located within the individual states.


Any thoughts???????

 

[Ted]

Perhaps it would help if the US managed to switch from an importing country to an exporting country. This economic dependency will get you in the end. Especially when you buy the imports on credit!

 

[Chief Bones]

Nearer today than yesterday .....

Perhaps it would help if the US managed to switch from an importing country to an exporting country. This economic dependency will get you in the end. Especially when you buy the imports on credit!

As measured against America's government spending, the promissary notes for imports, isn't even considered 'pocket change' or 'throw away' money. It isn't even a very very small fraction of the total annual interest on America's promissary notes.

Import/export imbalances are NOT what has created America's money woes. It is government spending more money every year than what comes in in the form of taxes. As an individual, if you were to do that for very many years, you would end up having to declare bankruptcy. Governments are no different. Sooner or later, those who they owe money to, are gonna come knocking on their door, demanding payment of the monies the government owes them. America isn't at that point yet .. however .. they are getting closer and closer every year.

I call it America's Apocolypse .. and, it is nearer today than it was yesterday.

 

[LeMask]

I believe that America still holds a huge potential... They can pay their debt in no time if they really want to.

And if the US fall, all the other countries will fall too... That's really apocalypse that you are talking about here.

But I strongly believe that as long as the US hold their huge potential, may it be financial, industrial, military, cultural etc... The people who control the world powers wont let America fall...

 

[Chief Bones]

I believe that America still holds a huge potential... They can pay their debt in no time if they really want to.

And if the US fall, all the other countries will fall too... That's really apocalypse that you are talking about here.

But I strongly believe that as long as the US hold their huge potential, may it be financial, industrial, military, cultural etc... The people who control the world powers wont let America fall...

That is one form of the Apocolypse .. there are other endings that aren't as upbeat.

Yes ... in all liklihood, the rest of the world would probably NOT stand by and see America fall. Even though America's reputation is slightly tarnished, America still is that beacon on the hill to all people who yearn for a democratic form of life.

I hope that America's politicians finally get their sh!t in one box and really address balancing the budget.

Ever since GW Bush inherited an economy where the deficit was being paid down because of a surplus, the deficit has been doing nothing but spiral out of control. Only responsible activism by our leaders can possibly address these financial errors in judgement.

America's debt is an Albatross around the neck of the economy.

 

[LeMask]

Well, dont forget that the money America spent, went from the people to an elite in power.

You spend a few billions for war and these billions will move from the people's wallets to the industry selling the weapons they will use in the war.

And these billion rich people can move, with their wealth from a country to another easily nowadays...
But I dont know if there is another place in the world where they can invest their money and still have a powerful military to defend their interests, a skilled and motivated workforce to make their investment efficient and a large population of consumers to buy useless junk...