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  • Treasury Default?

    Will this happen in the next twenty years?

    What do you think?
    A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

    "$250,000 a year won't get me to Central Park West."

  • #2
    Re: Treasury Default?

    NO
    The ChiComs own that and will come to collect when the time is right.
    Why do you think they gave so much much money to Obama, getting us ready.

    Comment


    • #3
      Re: Treasury Default?

      When does the interest on the debt become larger than the GDP? That should be when the default happens, because we simply won't have the income to make the payments.
      Dude, seriously, WHAT handkerchief?

      snooggums' density principal: "The more dense a population, the more dense a population."

      Iliana: "You're a great friend but if we're ever chased by zombies I'm tripping you."

      Comment


      • #4
        Re: Treasury Default?

        Originally posted by ScratchMonkey View Post
        When does the interest on the debt become larger than the GDP? That should be when the default happens, because we simply won't have the income to make the payments.
        Pretty soon. We're running a debt of $10.5T no with a GDP of ~$14.5T. However, I know that Japan has a debt larger than it's GDP, and they're not in immediate threat of default afaik.

        I think it'll take more than that.
        A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

        "$250,000 a year won't get me to Central Park West."

        Comment


        • #5
          Re: Treasury Default?

          Well this last year's cash deficit was over $1 Trillion, and that trend doesn't look to be reversing any time soon, so the default will hit pretty much as soon as investors decide they don't want to invest another Trillion Dollars per year into the US Govt. Of course, that doesn't mean the treasury will literally default, it probably means they will print up enough cash to pay the bills anyway. But that kind of printing is going to send Inflation through the roof, which is just as bad.

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          • #6
            Re: Treasury Default?

            I'd say the inflation might be worse than a straight up default.

            Wonder if we'll see Treasury borrowing rates pop up soon? They're still remarkably low - evidently investors have been fleeing everything else and buying up Treasuries like crazy.
            A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

            "$250,000 a year won't get me to Central Park West."

            Comment


            • #7
              Re: Treasury Default?

              At least all that money was well spent on a super successful war.
              |TG|Switch

              Better known as:
              That noob who crashed the chopper.
              That noob who ran over the mine.
              That noob who TK'd me with a sniper rifle.
              That noob who hit that APC at 300m with light AT! Our APC...

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              • #8
                Re: Treasury Default?

                *snickers*

                Yes, all that money spent on the war. You realize the 2008 bailout plan has already cost us more money than we've spend in Iraq in five years? In fact, it's fast closing in on TWICE as much money.

                Comment


                • #9
                  Re: Treasury Default?

                  Be realistic , it happen back in 1972 when President Nixon took this country off the Gold standard. It was a convoluted way of admitting that this country , could never payback the expense of Vietnam nor the Cold War . Since then this counrty has been writing checks it could not , nor had had any intention of honoring. The USA just suckered the world into our fanatasy that the Dollar held any value.
                  I want all those who get to know me
                  To become admirers or my enemies

                  Comment


                  • #10
                    Re: Treasury Default?

                    ammendment:
                    the uh... thingy with the money, uh the BUDGET, yeah that's it.

                    The budget must be balanced unless time of war. (actual, declared war, not this wussy military action or whatever stuff... DECLARE IT BABY)
                    When there is a deficit, 10% of budget must go toward paying that SOB OFF!

                    If the deficit is growing faster then 10% off, sell Bill Gates off on ebay and use that money to pay it off!
                    "Sympathy means a lot, coming from Kulmar. I didn't think it was possible.
                    Good luck getting rid of your disease. If you're infected, though, stay away--I can't afford to be a zombie right now.
                    " Ednos


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                    • #11
                      Re: Treasury Default?

                      Question: what does it MEAN if/when a default happens to the Treasury? We give the nation back to the natives and have to move in with our great-great-great-great grandparents?

                      Regardless of whether it's a technical possibility, without a consequence, it doesn't matter much, does it?
                      [volun2]
                      NS Game Officer. TF2 Admin. BF2 Admin / Scripter. PM with issues.
                      Tempus: Pokerface is nailing it right on the head. Everyone who is arguing against him is simply arguing against reality.
                      <anmuzi> it is not permitted to have privacy or anonymity
                      <LazyEye> yeah when I play on TG the server digs though my trash

                      Arm yourself with knowledge: TG NS TF2 BF2

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                      • #12
                        Re: Treasury Default?

                        National defaults happen. They've happened before.

                        "Sovereign borrowers such as nation-states generally are not subject to bankruptcy courts in their own jurisdiction, and thus may be able to default without legal consequences. One example is with North Korea, which in 1987 defaulted on some of its loans. In such cases, the defaulting country and the creditor are more likely to renegotiate the interest rate, length of the loan, or the principal payments[1]. In the 1998 Russian financial crisis, Russia defaulted on its internal debt (GKOs), but did not default on its external Eurobonds."

                        Argentina defaulted in 2002 and I believe Brazil defaulted in the past thirty years as well.
                        A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                        "$250,000 a year won't get me to Central Park West."

                        Comment


                        • #13
                          Re: Treasury Default?

                          it means that after that, no one wants to loan you money. Cheapscape punks! We've come to repo every asian-made electronic in the country! That'll teach you to default us!
                          "Sympathy means a lot, coming from Kulmar. I didn't think it was possible.
                          Good luck getting rid of your disease. If you're infected, though, stay away--I can't afford to be a zombie right now.
                          " Ednos


                          sigpic




                          Comment


                          • #14
                            Re: Treasury Default?

                            Originally posted by xTYBALTx View Post
                            I know that Japan has a debt larger than it's GDP, and they're not in immediate threat of default afaik.
                            Not debt, interest. It's when you can't pay the interest that the bank gets pissed. They'll let you carry the debt forever, and in fact encourage it.
                            Dude, seriously, WHAT handkerchief?

                            snooggums' density principal: "The more dense a population, the more dense a population."

                            Iliana: "You're a great friend but if we're ever chased by zombies I'm tripping you."

                            Comment


                            • #15
                              Re: Treasury Default?

                              Oh, lol. When interest is larger than GDP that will be bad news indeed!
                              A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                              "$250,000 a year won't get me to Central Park West."

                              Comment

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