Secretary of Russia’s Security Council believes United States may default on its debt

[Piotr]

Secretary of Russia’s Security Council believes United States may default on its debt​

22 Aug, 12:12
According to Nikolay Patrushev, the financial assets of any state denominated in US dollars and euros will simply be stolen

MOSCOW, August 22. /TASS/. Secretary of Russia’s Security Council Nikolay Patrushev believes that the United States may default on its debt in the near future.
Speaking at consultations with colleagues from the countries of the Association of South East Asian Nations (ASEAN), which took place on Monday via video link, he noted that the US national debt has exceeded $30 trillion, and the debt of Japan has reached almost $10 trillion. According to Patrushev, "taking into account such dynamics, there is every reason to believe that in the foreseeable future these countries will have problems with servicing this debt."
"As a result, Washington will default, as they have already done regarding their liabilities to Russia. The financial assets of any state denominated in US dollars and euros will simply be stolen," Patrushev concluded.
He drew attention to the fact that food and energy prices in the world have risen mainly because of "the printing press operating in the US and Europe."

"The main reason for the surge in food and energy prices is the printing press operating in the US and Europe. During the pandemic, the largest emission of money in 40 years took place. The United States printed $5.9 trillion. As for the inflation burden which emerges in this situation, the Westerners cynically shift it to developing countries," the Secretary of the Security Council of Russia emphasized.

https://tass.com/economy/1496645

USA and the EU stolen money from Russia. They are going to steal money from other countries as well.

 

[kingQamaR]

Usa already are in default.

If you go into default on your home loan or car loan, you soon lose the house or car. That's because you can't legally print money on your inkjet printer.

But the government can. They do it in the form of stimuleses and quantitative easing and zero interest rates. When they do, it decreases the value of all the rest of the money in existence. It is unsustainable. It will collapse soon.

 

[jhungary]

Usa already are in default.

If you go into default on your home loan or car loan, you soon lose the house or car. That's because you can't legally print money on your inkjet printer.

But the government can. They do it in the form of stimuleses and quantitative easing and zero interest rates. When they do, it decreases the value of all the rest of the money in existence. It is unsustainable. It will collapse soon.

lol, it won't.

That's because unlike other currency (like Euro, Pound or Rupee) US dollar is not just the legal tender in the US, but it is aso a commodity that was being traded in the world.

What people don't know (Mostly because they don't have a financial or monetary policy background) is that USD are always going to be in debt. That's because at this point, the world demand of USD is about 4 times the demand of local US need as a currency tender (8.5 trillion USD trade in a single day with 2.3 trillion USD in circulation) There are no way US can print enough money to take care of the world demand and not devalue USD, and the only way they can put forward is to issue bond, so they don't need to settle those transaction right away.

As long as world currency trade maintain its demand of USD, they can afford to put more in debt. And this can be sustained by the sheer volume of transfer and if you look at the debt to GDP ratio, you will find US is at 128% and raked 12, below country like Japan, Greece, Italy and Singapore. Well, you can wait for USD to collapse, but I would not hold my breathe it will in my lifetime (I am 40 years old)

So, what if USD really defaulted? Well, that would be bad news for the world, in fact, you probably don't want USD to go default because that would most likely mean whatever money you had (both in bank saving and in cash) would worth nothing, 58% of the world currency reserve is backed by USD. Which mean in layman term, 58 cents of every dollar you own is backed by USD, if USD goes kaput, that 58c goes boom. But in reality. you probably will lose 100% of your money when USD goes boom, because if USD goes busted. The first thing they will bail out is large bank and corporation. Before you say "I am going to buy gold" first of all, what are you going to trade for when USD gone boom? Second, how are you going to spend it? Are you suggesting you somehow melt it or cut it so you don't spend the entire gold bar or gold chain in one go for some bread and milk or what had you??

 

[kingQamaR]

As the controller of the world’s main reserve currency, the US government will never default on its debt, at least as long as the dollar remains the world’s main reserve currency.Like the Weimar Republic, the US Fed can just create insane quantities of “new” dollars to pay its debts. The difference being that the Mark was not a reserve currency, so economic ruin ensued

 

[jhungary]

As the controller of the world’s main reserve currency, the US government will never default on its debt, at least as long as the dollar remains the world’s main reserve currency.Like the Weimar Republic, the US Fed can just create insane quantities of “new” dollars to pay its debts. The difference being that the Mark was not a reserve currency, so economic ruin ensued

They actually can't, if printing money is an option, we would have been debt free already. Screw the world finance, if we just want to be debt free

Again, US put most of its currency demand in debt because it will delay the settlement, it's like covering 3 cups with 2 lids. you need to constantly move those lids.

 

[kingQamaR]

If the U.S. suddenly printed up an additional $16 trillion to pay its national debt, the value of each dollar in the world would decline and you'd see hyperinflation in your grocery bill, for example, doubles in a mont.