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Vancouver Off-Topic / Current EventsThe off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.
hmm.. smart way to create GDP: tear down buildings and rebuild them, even if the build is perfectly okay.
china's sitting on a huge pile of US treasury bonds, which they can sell at any time or earn dividends on when they mature. i doubt their bubble will burst anytime soon, but if it pops before the treasury bonds mature then they better hope there's a market for these US treasury bonds. if china can maintain their GDP growth until the US treasury bonds mature (assuming they purchased a large batch in 2009, expiring 15 years later in 2024) then the US market will inflate heavily at once, at which point they better have a strong dollar or will be forced to issue more bonds, and if people dont buy them then the US will be a third world country or taken over by the chinese LOLz
hmm.. smart way to create GDP: tear down buildings and rebuild them, even if the build is perfectly okay.
china's sitting on a huge pile of US treasury bonds, which they can sell at any time or earn dividends on when they mature. i doubt their bubble will burst anytime soon, but if it pops before the treasury bonds mature then they better hope there's a market for these US treasury bonds. if china can maintain their GDP growth until the US treasury bonds mature (assuming they purchased a large batch in 2009, expiring 15 years later in 2024) then the US market will inflate heavily at once, at which point they better have a strong dollar or will be forced to issue more bonds, and if people dont buy them then the US will be a third world country or taken over by the chinese LOLz
The US hits their debt ceiling in the next 20 days and will no longer be able to make their interest payments to China, essentially defaulting on their loans. This WILL have a huge impact on all the markets tied to the US Currency should it happen including ours, but heavily those who the US owes money to, the largest being China.
The US hits their debt ceiling in the next 20 days and will no longer be able to make their interest payments to China, essentially defaulting on their loans. This WILL have a huge impact on all the markets tied to the US Currency should it happen including ours, but heavily those who the US owes money to, the largest being China.
The US has a cap on their public debt called the Debt Ceiling (at $14.294 trillion dollars). Once they hit it they will no longer be able to borrow money, make interest payments or print more currency. Currently they're at $14.227 trillion dollars. Republicans are stalling on legislation to increase the debt ceiling. If this happens as I said they default on all their loans (primarily to China) which will levy charges and start to exponentially increase the debt (what's the NSF fee on a BILLION dollar payment?).
It's kinda a crazy situation... cause you know if I max out my credit card and miss a bunch of payments I don't go back to the credit card company and say 'hey I need you to up my limit so I can buy milk'.
But at the same time, if they don't it will be be the beginning of the US Currency collapse (well... arguably that would be 3 years ago but that depends what you consider the start of this shit).
Add note... it's 30 days not 20. I had heard May 6th but apparently D Day is May 16th
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~ Just another noob looking for a clue
Last edited by TheNewGirl; 04-14-2011 at 10:05 AM.
Reason: More exact #s
The democrats can make some really really radical cuts and buy time to about June 8th, but beyond that they can't make it unless the Republicans easy up on the legislation.
Essentially the two parties are playing chicken with each other at this point.
That said, a lot of economists have been saying this is was unavoidable as far back as 5 years ago. The US's external debt is at 101% of their GDP which is unsustainable, and unlike places like Italy and Greece and Ireland there is no European Union to bail the US out.
Wasabisasimi > You're totally right, it does.
__________________
~ Just another noob looking for a clue
The democrats can make some really really radical cuts and buy time to about June 8th, but beyond that they can't make it unless the Republicans easy up on the legislation.
Essentially the two parties are playing chicken with each other at this point.
That said, a lot of economists have been saying this is was unavoidable as far back as 5 years ago. The US's external debt is at 101% of their GDP which is unsustainable, and unlike places like Italy and Greece and Ireland there is no European Union to bail the US out.
Wasabisasimi > You're totally right, it does.
k why isnt this on the news?
actually, i dont watch tv.
WHO HAS A TV? SOMEBODY FLIP TO CNN!!
on a more serious note, mind = blown. haven't kept track of that. thats extremely serious, i wonder why the media isn't whoring this topic. we are practically america's annex, we should be seeing this all over the place, riots, chicks taking tops off in rage, etc
Economist Paul Krugman summarized the strategy in February 2010: "Rather than proposing unpopular spending cuts, Republicans would push through popular tax cuts, with the deliberate intention of worsening the government’s fiscal position. Spending cuts could then be sold as a necessity rather than a choice, the only way to eliminate an unsustainable budget deficit."
Economist Paul Krugman summarized the strategy in February 2010: "Rather than proposing unpopular spending cuts, Republicans would push through popular tax cuts, with the deliberate intention of worsening the government’s fiscal position. Spending cuts could then be sold as a necessity rather than a choice, the only way to eliminate an unsustainable budget deficit."
lower revenue despite many fixed costs? recipe for disaster. not sure how the government can just restructure its finances like a public company. they US is fucked lol
my prediction is the bar will be raised again, and again and again. it will be perpetual, it always has been a trend and will continue to do so until the US can acquire a substantial amount of resources to pay off its debt (perhaps by waging more wars which arguably can have a long-term ROI)
on a more serious note, mind = blown. haven't kept track of that. thats extremely serious, i wonder why the media isn't whoring this topic. we are practically america's annex, we should be seeing this all over the place, riots, chicks taking tops off in rage, etc
It is on the news.
I read and listen to the economic news every day. that's how I found out about it.
And frankly, most Canadians have about as little a grasp on the American political systems as they do of ours.
gdoh> The deadline and extension you're referring to was on passing the budget, the two parties were about to run out of money in the 30 day extention, which would have met government employees would cease being paid (that was last friday I believe), they resolved this issue at the 11th hour, I expect the debt ceiling issue will pan out similiarly.
No, the idea of lowering revenue is to push US to the limit. At its bursting point, people would be more willingly to accept drastic measures.
If you go today asking every civil worker to take a 20% on their benefits, they will probably tell you to f*ck off... but if you tell them, take the -20% or nothing, they will feel that the -20% offer is a pretty good idea.
I take this as a political strategy. Both republican and democrats know they need to do drastic cuts, but neither want to come out to say it out loud. So, they would just repeat what Roosevelt did back in the 30s. Announcing a default with a controlled consequence.
This will bring US more bargaining chips on the discussion board. Besides, if you think US won't dare to pull sth this massive off, you couldn't be more wrong. US as the biggest economy in the world will drag every single country in the world down. There's simply no substitution for US. If US has to lose 40%, the others have to lose at least that much if not more.
Everyone got fucked by abandoning gold backing. The only currency that is even partially gold backed now is the Swiss Franc.
Tool001, that first vid has an error.
Also: Greenspan is the fucking devil IMO.
Hehe: The US isn't actually the largest economy in the world any longer. China is, and soon India's going to knock them down another notch (if half the the EU wasn't already starving they would have already too). Their golden age is over.
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~ Just another noob looking for a clue
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