Its a matter of time before USA cant pay its debts & default
-
their debt is unsustainable and its a matter of time, before horrors of horrors, USA is unable to pay its debts and needed a rescue from IMF and World Bank to prevent the next Depression from happening.
-
There is no such thing as US not being able to repay it's debt, all the loans are denominated in USD.
The presses these days are very advanced, can churn out billions of dollars a day.
-
dude u know how much debt USA got or not? they spend more than they earn. some more they churn out 600 billion of dollars by printing money, devaluing their currency.
-
Aren't they doing it now.
If the other central banks decide to peg the US dollar to their currency, it's to their disadvantage.
-
If I owe you $100 interest every year, I make $50, come next year, I go print $50 to pay you.
If the debt is demoninated in the local currency, it's impossible for the central bank to default.
-
its a matter of time the greenback will be replaced as the reserve currency of the world. the US is purposely devaluing their greenback to make their exports competitive.
-
do u know that printing money will devalue the existing money supply and create hyperinflation. look at Indonesia's currency, then u know liao.
-
They are flooding the markets with USD because they claim certain countries manipulate their currencies to maintain a trade advantage.
-
Now US treasury is playing George Soros.
Seriously, if I flood the market with more USD and they still decide to maintain their low exchange rate policy, then it's to US advantage, they have more banana money to buy goods at the old exchange rate.
-
hey dude u know economics one or not? never mind
-
Originally posted by Rooney9:
hey dude u know economics one or not? never mind
Good question.
-
Jim Rogers u know who? He said should abolish the useless FED and say Obama doesnt understand economics, so is Dr Bernanke.
-
Originally posted by Rooney9:
Jim Rogers u know who? He said should abolish the useless FED and say Obama doesnt understand economics, so is Dr Bernanke.
I don't know.
Who is he?
Any relations to Kenny Rogers?
-
US will not go broke for the moment because no one can replace the American consumer.
China and Japan will continue to lend US the money she needs because they themselves require the consumer markets that their own economies have come to rely on.
US has also made the unwise decision to print money. If they continue to debase their currency it will mean that the wealth of US as a whole would be reduced significantly.
Reason being that everything in US, stocks, housing is dominated in USD. So a reduction in USD would mean a hit in the wealth of US consumers which may lead to a prolong slow down.
There is little trade advantage for US in debasing their currency. They are doing this simply because helicopter ben has absolutely no idea what else to do.
Every commodity is traded with USD, this means that a lower dollar would eventually fuel a very high level of inflation for US consumers as they find that they are attacked by a weaker domestic currency and increasing commodity prices.
In short helicopter ben will doom us all in the long run.
-
Jim Rogers said the biggest debtor nation in the history of the world is the US. US will go broke eventually. this century will belong to China. the 20th century belonged to USA. their days of glory is almost over, either the next 2 decade or thereafter. that is why he brought his family to live in Singapore and educate his 2 daughters in chinese.
-
printing money will debase the currency and create hyperinflation. it will create asset bubbles, either in stock or property market, plus the low interest rate such as the carry trade. borrow in US dollars in almost zero interest rate and invest in emerging economies or Asian assets.
-
Originally posted by Rooney9:
printing money will debase the currency and create hyperinflation. it will create asset bubbles, either in stock or property market, plus the low interest rate such as the carry trade. borrow in US dollars in almost zero interest rate and invest in emerging economies or Asian assets.
I never said US won't go broke; I said US won't go broke for now. Because other countries will continue to fund its spending.
The real problem with low interest rates is the creation of an artificial boom that is really fueled by inflation.
Once the cheap money disappears and loans are adjusted you will start to see problems again. The issue is that low interest rates disrupts the market from functioning correctly.
The future is in commodities where real tangible assets are the key to wealth as money increasingly becomes worthless.
-
the US only knows how to print money, thus debasing their currency. The US dollars, will follow the path of sterling pounds, ie down and down all the way.
the US will never solve their budget deficits. look at the incredible amount of money they spend on social welfare & on defence, clearly unsustainable. sure they want to maintain their status as the world's super power with troops in Japan, Germany, South Korea and their aircraft carrier scattered around the world. can they still afford to maintain status quo?
US is on a downward spiral. its a matter of time, before they cant pay their debts. the FED is supposed to keep inflation down, but they keep printing and debasing their currency, so inflation will rise. somemore the interest rates is almost zero to encourage businesses and consumers to borrow, thus igniting growth in the economy and bring down the unemployment rate. it remains to be seen if QE2 will work and unemployment down, we will know next year.
-
Originally posted by Rooney9:
US is on a downward spiral. its a matter of time, before they cant pay their debts. the FED is supposed to keep inflation down, but they keep printing and debasing their currency, so inflation will rise. somemore the interest rates is almost zero to encourage businesses and consumers to borrow, thus igniting growth in the economy and bring down the unemployment rate. it remains to be seen if QE2 will work and unemployment down, we will know next year.
Their intention is to increase inflation. Fed wants to target inflation at a certain percentage to spur spending and promote growth.
To put it simply the Fed has run out of ideas. They out of ideas and their Keynsian methods will come back to bite their ass.
You ought to have more revolutionary ideas if you intend to work for Jim Rogers...
Anyway lower interest rates cannot do anything for the US economy. Because the real problem is confidence. Even they have 0% interest rates the money will seek higher yielding assets in emerging economies because nobody has faith in the current state of the US economy.
This is the real problem. =)
-
USA already long ago can't pay its debts liao..........in fact they can't even pay the interests on the loans........
but not to worry becoz this is the real order of things............
USA controlled by ..............shareholders of Federal Reserve (private central bank)................that's why you read about the FED buying US Govt Bonds.....if US Govt is printing their own currency then that won't happen liao.....
World Bank and IMF (both are also private) are controlled by the people that own the FED.............and with Bank of England........Japan and European Central Bank also borrowing money in USD from the FED...........the FED is the world's central bank..........!
plus as long as commodities like oil.........metals..........grain.....etc etc...........are sold in USD........USD will always be the world's reserve currency and the FED will make tons and tons of money..................don't forget that most international loans are also made in USD and must be repaid in USD...............
so if USA go into depression.................game over for the world too.................China and India will collapse first............maybe both will have revolutions even................
-
Originally posted by βÎτά:
There is no such thing as US not being able to repay it's debt, all the loans are denominated in USD.
The presses these days are very advanced, can churn out billions of dollars a day.
what printing presses.............money has been created out of thin air using computers long ago..........
it's in digital form.............they even save the money from buying paper and ink..............
private central banks are the greatest scams of all times and their owners are the owners of this planet............