U.S Governmet Shut Down

so china will eventually owns america?

why don't germany wants to own greece?

@thewhy,
that's exactly how to get yourself in debt

people/countries should not be able to spend more than they have, so they don't dig your own graves?

Here's the thing, the print can go on, crazy people just make everyone go nuts and get scared on this. The Government prints more cash because the US Dollar is growing in the demand of its use. If it wasn't printed more often, then Hyper-deflation would occur, and interest rates would dip insanely, (Which isn't a good sign of the economy), so the US uses it as a little security on the dollar. Also, China will soon have their days counted, its destine to fail, since people don't know everything they should. China can't touch the US, the US and China are interdependent on each other. Instead of blaming the US military for increasing gas prices, we should blame them on China and Africa, since they are skyrocketing on Oil Demand, thus increasing demand, and in turn, increasing prices for oil.

A little bonus: Just a few days ago, the US overtook Russia in Oil/Gas Production, so they aren't so happy about that. Notice I didn't say CRUDE Oil/Gas Production.

the odds of the US defaulting are in fact very low christos.... but these government shutdowns can cause uncertainty and credit downgradings..... but your right this is unlikely... anyways theres no reason to have a debt ceiling

I totally agree Ard, default is like suicide, and its pointless to have it, we will never default unless the world is somehow ending.

Pssst... Pssst: (Germany already owns Greece)
Next on the shopping list: La France.
And China is unfortunately destined to fall, only and only maybe could it be saved by democracy... If it ever becomes one.

lol, why don't you move out of the check out lane. Frankly, Germany has Spain and France on its list, as well as a little private island, Cyprus.

@thewhy

Michael Wilson you are crazy.... i hope you are tryng to be satirical..... how can you claim to not be catholic and still talk about hell faith and the antichrist with im assuming a straight face


To answer your question, very simple, I WAS Catholic in the past when I was adopted by a foster family, all my life I have been searching the real Jesus and His Father, NEVER once have I found Jesus in the Church. It took me 30 years to find Jesus by Faith with out the Church after for quite sometime when I left the Catholic in my twenties and yes, I did have some trouble along the way too. Then I realized, how foolish I was even when I was thinking of going back to the Church, then I stopped. This year I encountered Jesus and God several times even though fighting Faith Test by the devil himself too. I have seen hell in my sleep, and it is this earth it self. Faith is something that we can not see with our own physical eyes yet they are there in the Spirit and there is another life after we die. I know many people will not believe me because they're brained washed by the Catholic Church, it is clearly that God did say to me in my sleep, which again it is by Faith, that God can not save the Catholic Faith. That is all I can say about that. I am not being ignorant, I am just telling you the truth. I can not force anyone to leave the Church if they want to be saved, it is your choice, but to me, I can not go back, no matter how much people say to me on my youtube as well. I am against the Catholic and all other Churches and occults like Islam, theres too many of them to name.

@christo: (but don't look it up - there is none, although the EU tries hard to change that).


Christo, i did and found this site.

http://www.davemanuel.com/2010/02/12/the-last-13-major-sovereign-bond-defaults/

(the excerpt below is taken from a larger article.)

Let's look at the list, starting in the summer of 1998:

Venezuela, July 1998 - defaulted on $270 million worth of domestic currency bonds

Russia, August 1998 - a massive $72,709,000,000 default that rattled the entire global economy. The trouble started in August of '98 when the country missed payments on local Treasury obligations, and later extended to include foreign currency obligations and MINFIN III foreign currency bonds. Russia's debts were eventually restructured in later years.

Ukraine, September 1998 - $1.27 billion dollar default

Pakistan, July 1999 - defaulted in July of 1999 but quickly resolved the situation

Ecuador, August 1999 - missed a payment, leading an an eventual restructuring of over 90% of their bonds. Default amount was around $6.6 billion

Ukraine, January 2000 - defaulted again (1.06 billion) in January of 2000. Defaulted on both DM-denominated Eurobonds and USD-denominated bonds. Ended up rectifying the situation by exchanging their current obligations for bonds with a longer term and lower coupon.

Peru, September 2000 - defaulted on $4.87 billion of debt but rectified the situation within 30 days

Argentina, November 2001 - a massive $82.26 billion dollar default that once again rattled the global economy and worldwide markets. Missed a payment in early 2002 - debt obligations were restructured and the country continued to receive funds from the IMF to aid in their recovery

Moldova, June 2002 - defaulted on $145 million worth of debt, only to rectify the situation a short while later, once to default once again

Uruguay, May 2003 - Argentina's troubles spread to Uruguay, and the government of Uruguay defaulted on $5.7 billion dollars worth of debt in May of 2003. The country eventually completed a restructuring of their debt obligations with their bondholders

Dominican Republic, April 2005 - Defaulted on $1.62 billion dollars worth of debt in April of 2005. Eventually completed a debt restructuring that ended up extending the maturity of their debt obligations by five years

Belize, December 2006 - Defaulted on $242 million dollars worth of debt in December of 2006

Ecuador, December 2008 - Defaulted on $3.2 billion dollars worth of debt obligations after calling several of their previous debt offerings "illegal and illegitimate". An unusual situation in that Ecuador is thought to have the resources NOT to default, but chose instead to default for "moral" reasons.

*note* there were other sovereign debt defaults that occurred during this period, including Ivory Coast, Grenada and Seychelles, but these countries did not have Moody's ratings on their sovereign bond obligations at the time

Source: Moody's - Sovereign Default and Recovery Rates, 1983-2008


Filed under: The Economic Meltdown

anyway, one could consider the US to have already defaulted in 1971 when Nixon took the USD off the gold standard and made it a fiat currency.

Such an interesting conversation, & i couldn't agree more claude balls.

@ claude: My point exactly. This is debt owed in foreign currency that the country cannot control. There can be no default when you control the currency in which you owe, except if you choose to do so. Economics 1.0.1.

@ Bauer: Those who fail to learn from the past are doomed to repeat it. Germany thought she owned much of Europe in the past. Many times in fact. It didn't end so well. For any party involved, including Germany.

Now, a new brand of arrogance, nurtured by ignorance, is emerging. The kind of arrogance that thinks an industrial export-oriented nation can survive by struggling its clients (and I'm not talking about little Greece). Unless the German elite wakes up soon, they will find that they succeeded in ruining Adenauer's, Schmidt's, Brandt's and Kohl's dream: To tear down borders and barriers on German trade and to make the DM Europe's single currency. You take high employment and wealth for granted but what happens when the Eurozone is torn and, let's say, Fiat floods the German market with Puntos costing 2,000 DM. What happens when German products get too expensive for the rest to buy? The answer is: massive unemployment and recession. Not for us but for you.

There is a limit to how much a country can print before people lose faith in the currency, China is currently using its USD reserves to buy up vast tracts of resources around the world, before the FED devalue it into oblivion...The only way the US can reduce its deficit and its liabilities is by devaluing its currency. At some point the USD will lose its place as the world's reserve currency, then interest rates will matter to the US. There is still massive amounts of debt in the international finance system that has to be extinguished. All this money printing can postponed this happening, but it will still happen at some point in the not so distant future.

I don't disagree with your last observations Claude - you do grasp the situation. I don't really believe though that the USD is anywhere near to losing its status as the global reserve currency. However, one or two presidencies like the GWB 8 years could go a long way to changing that! :P The only thing that could threaten the US position as I see it is, ironically, a serious Chinese slowdown in growth. This might be around the corner. After all, for every 3D printer made out there, 1,000 people in China will lose their jobs... Who knows?

Yes i agree Christos,the US has a while to run, its a powerhouse. China has a chronic debt problem at the local and state level, interesting to see how this plays out. I have read that when things go bad in terms of international currency failures, China may step in and back its currency with Gold, or the BIS could do it with the SDR. That would be a game changer...maybe China will be the one to rise from the ashes.

3D printers?
has that come out of R&D yet, last heard of that a decade ago. and i have yet to see one.

hmm....if the startrek replicator becomes available on earth, then we will no longer worry about supply and demand of anything on earth?

nothing will be shortage or oversupply, anyone can create anything as he needs.

we could probably travel between earth and simcountry too?

3d printers are very much a reality Xon - they have limited applications so far but they are the wave of the future (the near future, not the distant one)

so are they capable of producing all types of metal yet, or mostly just plastic products.

just google them, and it seems that most of them are just using plastic-like materials to produce plastic type components?

interesting
i could use one if it could produce what i want now, i.e. food products

3D Printers print using the material you supply them, whatever that may be. They do not "produce" metals.

very interesting from the putting out system to the factory system and now to 3d printing.... so where are you guys investing your money?....


Michael Wilson lay off the LSD for me... for yourself

@thewhy

I don't have LSD for whatever that shit is. Too bad if you don't believe, I do not give fuck damn if you kill my brains, you can not kill my soul. Since you are dedicated into Catholic lifestyle, you are condemned in hell for eternity with the Pope and his Church, have a good day and good time suffering in hell.

they can't print gold or silver...

Hell in the biblical sense does not exist! It's just made up and is a work of fiction.

Well, if you truly want to know what hell is, it is this earth. I seen it twice this year already. Now I know it is this earth as we are standing on it.

Hell is not....i repeat is not this earth @Michael Wilson.
also the fifth heaven is the location of "hell" or whatever one choose to call it.