U.S Government Debt Crisis !!!
 

As title states, the U.S is fucked. They have reached there debt ceiling of 14 trillion dollars. You can use any media source world wide and they are all reporting on this.

Extreme cliffs -

- The US has to take out more debt otherwise they will default on loans
- If they default world markets will be in termoil
- Social Security checks will not be sent out
- Lending rates will skyrocket
- China becomes new world empire

August 2nd is the deadline, and the American government is making no progress. Aware your selfs.

inb4 U.S economy crumbles
inb4 'cool story bro'

you forgot 1


tldr :troll:

So what you're saying is... I should go buy a shotgun?

This is one time it's going to be bad being next to the US. companies who doing a lot of exporting are going to be fucked.

you dont have one?

so does this mean Diablo 3 will be delayed ?

^hopefully not..its gettin very close to release date damnit!

:offtopic:

they have to raise it and will

Short term Solution: quantitative easing, printing money, whatever you want to call it.

Long term: Impact, hyperinflation!!!
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They need to print money like crazy lol or sell their top secrets weapons to china for money.

Or they could stir up WW3.

WW3 is the only solution imo

I have a 4000lbs hunk of metal with a motor? hahaha.

China will be the new empire, saw that coming
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This is not an educated summary of what's going to happen.

The thing is that US has reached the debt ceiling (meaning US government can go on and borrow to fund its expenses) and there is a big political debate going on in DC (Republican wants BIG expenses cuts, while Democrats wants to raise taxes) and conclusion can't be reached as of today.

What is going to happen?

To be honest, no one knows. It would be the first time ever in modern history that US defaults its debts. Catastrophic? Yes, but what's interesting is how much?

For those thinking this collapse would make China the new world super power should go back and do Econ101 again.

The intensity of such an event would drag the entire world down. Canada for sure won't be safe from it given the dependency on US trades. China's trillion dollars worth of US notes becomes toilet paper overnight (the value would be up to the negotiation with the debtor, in this case, the US) and will sure lose much business from US.

The currency market would be in turmoil as this might trigger a massive selloff for bonds shifting money everywhere.

All I can suggest is that, especially those with funds to invest. Hold on tight, we might witness an once in the lifetime opportunity to become rich.

For those who don't, you might want to pay attention to the news and your work to minimize any impact and if possible, save up some money for the absolute worst situation.

IMHO, US congress will reach some sort of agreement. But given current possible plans, we will see deep reduction in consumption for the short-mid term from US (the biggest economy) regardless how their agreement work out. So, there won't be any good news for the market. Just prepare yourself for the worst and you would be fine.

or they could do what iceland etc did and what the Greek citizenry want to do which is :fuckthatshit:

This will get resolved at the last minute like they have always done. Right now it's just political games been played on both sides trying to get the best deal.

It goes even deeper.

The US is completely polarized in politics. Very reminiscent of the late 70's to be honest.

Both sides are wrong, and right for various reasons.

You need to raise taxes AND lower spending. And they need to start with the department of defense.

Unfortunately, no one is willing to do what is right at the expense of getting re-elected, because everyone is so polarized, any compromise looks like failure.

Yes, raising taxes in a lower economy is bad(thats a hint Canadian politicians, expecially BC), and cutting services during a recession is also bad.

But it gets worse. The gov't has run out of gas. Everything they have done to stimulate the economy has failed. Two rounds of qe...failed. Stimulus spending...failed. Bailouts of the banks...well, it kept it from getting worse. Unfortunately they made a bunch of rich guys richer in the process.

So what happens...same as every other deadline crunch negotiating...they sit in a room and pick the people that both parties equally don't care about. What happened with the tax cut extension negotiations? The dems lost, and the republicans walked with 30 million in spending cuts. Yippee.

No one can actually sit there and say what specifically they want to cut. The republicans seem to like to cut spending that affect their social engineering, ie. planned parenthood.

Should be an interesting month.

WW 3

the US is the only country that can legally print money everyday uncontrollably making the USD$ worthless, eventually the US will have to declare bankruptcy and start over

China is the new superpower for year 2000's then will shift to India in 2100's

how would one make money off of this if they were thinking of investing? :D

Agree.

Disagree, I think this kind of thinking is what's wrong with society today.
The US has been decreasing taxes for the longest time and it hasn't done shiet. Since the Reagan tax cuts the the rich has been getting richer and richer and the poor poorer. The gap between the rich and the poor is widening.

The richest 20% own 85% of the wealth. That does not sound right at all.

We've been told numerous times again and again by Corporations and lobbyists that tax cuts are great for corporations and generate jobs. The coffers of these companies get bigger, increase the wealth of the rich. But no new jobs have been created.

We need to INCREASE TAXES on the Rich.
OBAMA and the Dems want to increase taxes, but republicans, funded and lobbied by rich corporations wont have it that way.

For example , recently CISCO saved 7 Billion dollars in taxes due to tax loopholes set up by Republicans. This is a company whose cash reserves continue to INCREASE as US workers languish on the unemployment line. Only some 5 years ago it had less than $10B in cash reserves. Today OVER $40B.

When you have 40B in cash reserves, I think you can afford paying taxes cause they aint fucking creating any new jobs!

^ Again just think of the money that $7 Billion could be used on, stimulus on infrastructure. Pay down debt. Social security. Anything.

I just dont think it's fair that the poor people get screwed while the rich just keeps on getting richer.

what id like to know is why no1 is suggesting they cut their military/military research expenditures...

even when they were discussing the budget they wouldn't touch any of the military spending (military pay isn't a part of the expenditures im speaking of)

but yet they're willing to cut essential services/etc for the populace