I only read this because you quoted me. If I had wrote all that crap down no one would care. I bolded stuff I had already said in my extremely condensed summary of cliffs which were the MAIN POINTS. So I guess your post is an uneducated summary of my post?

Oh and of course no one knows what would happen. Thanks for pointing that out to us.

I think some of you guys are missing the point. The US government owes 14 trillion dollars.


14,000,000,000,000

See its like a fat person, at some point they were 200 lbs but now they have really filled out to like 800lbs. It doesn't just happen over night ethier. Now your at 800 lbs and your doctor is telling you if you don't stop now your going to die. You still don't listen and you pack on another 200lbs (2008 1 trillion dollar bailout). Now the doc is saying any minute, you might just keel over and die. You need to cut, BAD.

If they take another loan they are officially the dumbest people ever. They need to go back to basic math. You don't get out of debt with more debt.
Serious changes need to made. END THE FUCKIN WAR, SELL SOME GOLD, SELL SOME LAND, SELL SOME HOT ASS BITCHS. Cut every stupid government program... ETC ETC. Sell and cut, sell and cut. Thats what I would do if I had lots of debt. So what if the markets take a shit, it will feel good when its all done.

This is real life, don't give me formula's.

Your You're. Please, for the love of god.

Secondly, everyone has a perfect solution to the worlds troubles. It all seems very easy in your head (hell, my ideas make perfect sense and i'm just as frustrated as you), that doesn't mean that anything is going to happen.

Chances are, the way the world is working our lives aren't going to change very much over the next few decades (just my gut feelings).

And no, don't cut. I want my F35's bitches.

lol, where can I buy shares of the Federal Reserve Bank?

14 Trillion is huge, but that can't be eliminated overnight. Almost every company or country has debt. Debt can be good, but too much where you can't make payments is bad. Debt is generally cheaper in terms of financing than equity.

the US GDP is over 15 Trillion a year. We can't cut everything.

Your post is illogical on soo many levels. I think of that scene from Billy Madison.. . .

NYSE:JPM
:troll:

They need 20 billion per month to pay the interest on the debt, they take in 200 billion and even after paying medicare, ss, military pay, vets etc, they have about 53 billion left over, so the story obama is spinning about a crisis unless they let them borrow even more money, is a crock. The main problem is that 50% of the US pays no federal income tax and they have huge entitlement programmes that he has increased since he got into power. Obamacare is unworkable and will cost them trillions that they can't afford under their current setup. He needs to cap borrowing, cut spending and get the 50% who are freeloading, to pay their fair share. He won't do that because it will be political suicide for his support base. Raising taxes in a recession will hurt any recovery...he said so himself back in 2008 when he was running for the job...he also voted against raising the debt ceiling back when he was spending his 140 days as a senator.

On the bright side, car parts from the US are cheaper than ever in Cdn dollars. :woot2:

I got 3500 in US Dollars, wat do i do with it?

Its not the perfect solution. Its the only solution. They have 2 options, take on more debt, or man up. The problem is 1000x more complex than that, but in the end my nerd to hood explanation works.

Thanks for the grammar reminder.

Roof mounted 50 cal. 3 of them.

countries like Germany, and Scandanavian countries like Finland, Norway and sweden, who have literacy rates of 100% have higher income taxes than the US and those countries are much more well off. These countries also have the highest proportional amount spent on education and developing workers.

Raising income taxes for the RICH (not poor) is one of things that MUST be done. Money needs to be raised somewhere.

Lowering taxes and hoping they will use the savings to spur investments / create jobs - the trickle down theory - doesnt work becuase taxes are too low. Back then -- the Regan years taxes were super high and yes they needed to be cut then but now it's been decreasing and decreasing that it's reached too low. Companies paying workers less and shipping jobs overseas is not the key.

the United States has a top marginal income tax rate of 35%. That's dirt low compared to other western countries like Canada, Germany and the scandanavian countries.

debt ceiling means very little.
the US gov has raised it 10 times since bush jr.

its like a credit card if you're terrible with money. you reach the limit, and then ask for a limit increase. right now they're extremely close to it, and you know they're gonna continue to raise it. this issue comes up at least once a year.

QE3 is definitely on its way, in one form or another tho.
they wont call it QE3 because it'll sound pathetic, but they are definitely going to inject some more fake money into the economy.

Nothing bad will happen even if they reach an agreement. A few US states have been unable to agree on budgets and thus stopped paying bills. They made the payments they had to, debts, and just didn't pay anyone else, instead issuing IOUs to state employees and companies.

I suspect the US will do the same. They will pay who they have to, and suspend all other payments. Pensioners, medicare, welfare, military will be the first to suffer.

What will happen aside, the US is at an impasse. They spend more on entitlement programs (pensions, welfare, medicare) than they take in taxes. Then add the costs of government, military, ... and they are screwed. I understand wanting to raise taxes, yet the heart of the problem is the entitlement programs take up most off the budget. These need to be cut back even if taxes are raised, as just raising taxes only kicks the can down the road as these programs are set to grow far more that GDP, so taxes cannot keep up.

If anyone thinks US wants to or plans to repay the debt, you gotta be nuts. As with all politicians and their active term, Everyone is trying to take a share of it and pass the ticking time bomb to the next person in line. No one EVER has tried to reverse the debt problem, because they simply cant.

Be selfish for a moment and think of a government as a company. Its purpose is to survive and grow. Instead of share holders, you have the votes of citizens. If you pass a election, you pretty much have 4 years of undisputed income at your expense. Everything a government does is for the benefit of itself, not its citizens, but it requires the vote of the citizen to stay afloat.

In short and mid term, I see USD continuing to deflate. Its actually on a spiral cycle since 2009, and its quite easy to predict (every 3-4 months, like clockwork, most recent being around end of May this year). QE1 and QE2's full impact of currency deflation has not been seen yet, as US is still recognized as AAA. This status is coming under threat, and if downgraded, you will start to see mass degrade of USD value. Debtors will exit and are less likely to lend to US unless for higher interest rates. China for example in 2011 has already shifted attention to borrowing to Europeans than US. China is gearing up for US debt default, and are not renewing their loans.

Someone here posted previously that we will see a once in a life time chance to get rich is correct. However unlike 2009, I don't see the potential of a US rebound (If you invested in companies like JP Morgan, BAC, Ford, you would have made a killing). This time, I wont invest into US companies; instead I get into globally recognized and TRANSFERABLE commodities as gold, silver, etc.

Aside from the US, China (artifical GDP growth) and Europe (All countries except Germany are starting to see downgrades and cannot sustain their own loan interests); both are in crisis. Its turning into a wildfire rather then a localized hazard.

+1
the republicans are holding out to bargain their demands...

On the other hand, the situation might NOT get resolved if one or both side decide to be an asshole and let everything burn, then blame the other side for the mess.

ugly politics :devil:

Bringing this home a little.

Do Christy Clark and Stephen Harper know how to spend your money better than you do?

That is not true, lookup the Clinton years.

Oh, lookup the Clinton years with love man. It's the last time the US made sense.

I was so hoping for Hillary to get it just for the chance to have a repeat.

The focus on him is the Lewinsky affair, but everything else was good.

He gave Bush a balanced budget after 8 years in office! He deserves credit. He borrowed from social security to do it, but it was balanced.

Just start by fucking stop with all the rich people tax breaks/cuts. I know by this point it is a political talking point but trickle down economics DOES NOT FUCKING WORK when the trickle is just reintroduced back into corporations/people's pockets.

There's two things here... first of all the US Currency IS going to collapse, it's just a matter of when.

This is going to happen. It's been predicted by economists for about 15 years now though everyone laughed at them in the Greenspan years and thought "Oh that will never happen" because they were rolling in the green but the commodities market set the US up to be in an unsustainable position and now they're paying the price for all those good years.

Secondly, the US political system has become a warzone of it's own. The Republicans are holding the Democrats hostage on any efforts to repair the economic situation. Essentially they've resorted to a Starve the Beast tactic, forcing Obama to accept consolations and bills that he would not other wise and threatening not to cooperate if he doesn't (one of these bills even redefines rape). In my opinion THIS IS TERRORISM of the worst kind but ultimately only hastens what is already inevitable.

Oddly the political climate is not unlike the middle east in the late 80s, early 90s where extreme conservatisim is becoming a rebellion of it's own, and ironically people are burning up their rights willingly in revolt against what they view as the elitist liberal evil. This behavior further forces polarization which further adds to the anger which forces more extremism and so on into a nasty cycle. Historically speaking in other cases where in this has happened the conservatives usually win, cause they use God as a weapon. Scary isn't it?

Superpowers don't stay global superpowers forever and when they cease to be so they crash spectacularly. This is financial reality. Invest in China (though I personally think China's created an artificially inflated economy already and is going to crash faster then the US did) and India. Buy some gold or silver.

From China Agrees To Erase Portion Of U.S. Debt If Americans Dress Up In Costumes And Perform Silly Dance For Them | The Onion - America's Finest News Source:

:troll:

Check out the keiser report on youtube or rt.com
The guy on the show is awesome and informative at the same time...
Most of his episodes have something relating to the us debt crisis, check it out

Shutup. That is another dumb Main st vs Wall st argument. Main st's pensions are invested in Wall st. If you tax Wall st more, you tax your own pension/RRSP as most of us are not heavily invested outside Canada/US.

Look at entitlement spending in the US, its shot up exponentially to unsustainable levels. Taxes have nothing to do with that, that is Main st greed wanting more and asking others to foot the bill.