USA's public debt grows to war level

[Madmen]

Increase in supply of money = decrease in value

It means the dollar will soon be worth less than a sheet of toilet paper.

This may be true but it will not happen anytime soon. Unfortunately the dollar is still considered a safe haven compared with the other major currencies i.e. euro, yen, yuan. So they will keep on printing dollars

 

[Abii]

This may be true but it will not happen anytime soon. Unfortunately the dollar is still considered a safe haven compared with the other major currencies i.e. euro, yen, yuan. So they will keep on printing dollars

believe me, that can change VERY quickly

 

[FairAndUnbiased]

If Dollar becomes worthless,then Chinas trillion dollar foreign reserves, U.S bonds will be worthless.

So we lose our savings, you lose your entire economy. We're willing to make that trade, are the American people willing?

This may be true but it will not happen anytime soon. Unfortunately the dollar is still considered a safe haven compared with the other major currencies i.e. euro, yen, yuan. So they will keep on printing dollars

The only 100% safe commodities are gold, silver and oil. And the prices of all 3 are rising. Silver is rising from a very low base due to Goldman Sach's 10 year silver short.

 

[Chinese-Dragon]

So we lose our savings, you lose your entire economy. We're willing to make that trade, are the American people willing?

Even if the US dollar collapses to zero value, and we lose $1 trillion in US bonds...

Then China will STILL have the largest currency reserves in the world by far, at over $2 trillion.

 

[LeGenD]

USA and Europe debt is due to the failed capitist system...
an economy based on banks and hence on compound interest.
they will have to reformulate their financial system.

There are some key differences between US and European economic systems:

The critical difference between the financial structure of the United States and Europe is that we have our own national currency, and the countries of the Eurozone do not.

In the United States, Congress, as dysfunctional as it sometimes is, provides a mechanism to forge a nationwide fiscal policy. Europe, where most fiscal decisions are made at the national levels, has no comparable mechanism. What you get instead is a hodge-podge of policies -- what you'd have gotten in the U.S. if we had kept the Articles of Confederation rather than the U.S. Constitution.

The U.S. Constitution not only gives the United States the ability to decide -- country-wide -- how much the largest player in the government bond market will borrow. It also gives us the ability to handle differences in the economic circumstances of our states without threatening the collapse of the entire national economy -- or the financial system -- and to prevent the internal political problems that result.

More interesting part:

Europe faces another problem we don't have in the United States. If countries that control their own fiscal and monetary policy have their own currencies, then economic imbalances between them often appear in changes in the values of those currencies relative to each other. That's true at least if they are allowed to float on world currency markets. Note that one of the big disputes between the U.S. and China today is that the Chinese don't allow their own currency to float relative to the dollar, resulting in relatively lower prices for Chinese goods in the U.S. and higher prices for U.S. goods in China.

Read more here: Robert Creamer: Why the United States Is Not Greece or Italy -- and Shouldn't Act Like It

You can never generalize on economic affairs. They are too complex. And people typically get fooled by the art of speculations.

Bottom line Arabs and or China could take america down tommorow. Simply if arabs stopped accepting US dollar for oil or if chinese dumped their dollars. However their would be adverse consequences for both if they did it overnight. They are and will gradually do it prob a max of 10 years. The US dollar will lose its eminent place as reserve currency and then Americans will see poverty but then that small group of wasps and jews who control matters in US will have moved elsewhere and leave poor american people to pick up the pieces

Major question is that who is willing to fill the void that US may leave?

China is not willing to float its currency, as pointed out above.

In the world of economics, every action has a reaction. There are pros and cons of every major step.

If US goes down, the world will loose a major export market. The economy of every nation will take a hit according to its investment and economic ties with USA. The economies of the world are interlinked. If one big player goes down, the entire web will be badly effected.

This translates in to a BIG LOSS for China. Chinese members here shall not admit this. But they don't run Chinese economy either.

Today WESTERN economic bubble has blown up. Tomorrow, the case of China will be similar. And the story will continue. Just keep in mind that nothing is EVERLASTING in this 'materialistic' world.

Lesson is that don't put too much faith on any single side. Just play your cards as safe as possible.

I agree. Which countries would be first target by US with a bang? Ironically, Iraq, Afghanistan, and Libya wars increase US debts dramatically....

Yes, this is a very dangerous possibility.

There was a big economic meltdown before WW-II.

USA is like an out of control teenager addicted to DEBT.

Situation can change in the future. Americans know this.

US debt rose so high because of recession, Obama's policies, and WOT. These three will not remain forever.

 

[beijing consensus]

There are some key differences between US and European economic systems:



More interesting part:



Read more here: Robert Creamer: Why the United States Is Not Greece or Italy -- and Shouldn't Act Like It

You can never generalize on economic affairs. They are too complex. And people typically get fooled by the art of speculations.


Major question is that who is willing to fill the void that US may leave?

China is not willing to float its currency, as pointed out above.

In the world of economics, every action has a reaction. There are pros and cons of every major step.

If US goes down, the world will loose a major export market. The economy of every nation will take a hit according to its investment and economic ties with USA. The economies of the world are interlinked. If one big player goes down, the entire web will be badly effected.

This translates in to a BIG LOSS for China. Chinese members here shall not admit this. But they don't run Chinese economy either.

Today WESTERN economic bubble has blown up. Tomorrow, the case of China will be similar. And the story will continue. Just keep in mind that nothing is EVERLASTING in this 'materialistic' world.

Lesson is that don't put too much faith on any single side. Just play your cards as safe as possible.


Yes, this is a very dangerous possibility.

There was a big economic meltdown before WW-II.


Situation can change in the future. Americans know this.

US debt rose so high because of recession, Obama's policies, and WOT. These three will not remain forever.

US has a massive bond bubble.
when that pops, its over for the US.

 

[VelocuR]

Yes, this is a very dangerous possibility.

There was a big economic meltdown before WW-II.

Which country would be the target by US next war to reduce debts and more profits?

 

[beijing consensus]

Which country would be the target by US next war to reduce debts and more profits?

probably china.

china is america's biggest threat to pax americana.

china has the ability to give a challenge to the dollar.

china is the only country that can challenge america economically.

 

[ChineseTiger1986]

Now it seems that only the WWIII can save the US economy.

 

[Sasquatch]

Now it seems that only the WWIII can save the US economy.

With Iran ? How many Dead American Soldiers ? how much the cost ? USA has not learned noting and WWIII only loser will be USA.

 

[VelocuR]

probably china.

china is america's biggest threat to pax americana.

china has the ability to give a challenge to the dollar.

china is the only country that can challenge america economically.

Both countries have nuclear, it is not possible to war against each other directly but the example of South China Sea challenges in order to control China.

I think, better way to keep US busy is to use South America. I don't know why US didn't attack South America even Brazil is growing.

 

[Obambam]

Now it seems that only the WWIII can save the US economy.

Either that or be prepared to see exchange rate of one Congolese franc to a million US Dollar

 

[ChineseTiger1986]

With Iran ? How many Dead American Soldiers ? how much the cost ? USA has not learned noting and WWIII only loser will be USA.

The US should have originally collapsed during the economic crisis of 1929, but the short coming WWII has saved her from the total economic collapse.

Now US has taken the WWIII as the consideration in order to save her economy, but the landscape of the geopolitics has changed so much after the WWII. So it won't be easy for US to start a WWIII.

---------- Post added at 08:23 PM ---------- Previous post was at 08:21 PM ----------

Either that or be prepared to see exchange rate of one Congolese franc to a million US Dollar

Well, there is nothing they can do right now, it is their destiny.

 

[Hulk]

Lot of useless discussion, 90% of their debt is internal. Useless discussion.

 

[regular]

Now it seems that only the WWIII can save the US economy.

Even the WWIII won't be able to save the US cuz China will prove to be its death warrant for good .....Insha-Allah!.......

---------- Post added at 07:25 AM ---------- Previous post was at 07:23 AM ----------

Both countries have nuclear, it is not possible to war against each other directly but the example of South China Sea challenges in order to control China.

I think, better way to keep US busy is to use South America. I don't know why US didn't attack South America even Brazil is growing.

Its too dangerous for US to messup within its backyard, South America.....