51% Predict U.S. Government Will Go Bankrupt Before Budget Is Balanced
How this ill logic prevails is beyond me.
The Federal government is the sole, legal issuer of the U.S. Dollar. Contrary to popular belief the Federal government doesn’t borrow money. After all, they are the sole issuer of currency. Why anyone thinks that the only legal entity to issue currency can somehow run out of the ability to issue currency is, well, flat out retarded.
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I don’t think it’s so much an issue of them running out of money as it is suckers to hand notes off to.
Not that I espouse this theory (too extreme) but on a long timeframe, they are saying the government will never balance a budget, and thus the total collapse of this country is more likely to be witnessed first.
Highly unlikely in my opinion.
Fx trade, you missed the key point.. Its an emotionally charged question.. A balanced budget.
I’d dare say a balanced budget is of no real concern. I’m sure that will irritate somebody. lol
I’m come to the downbeat conclusion that the collective will of the American people is reflected in the actions of US Congress. If/when Americans stop buying crap and running up personal debt, that message may translate to election results. Americans will spend, spend and spend until reality slams them in the face. Based on the way people drive, there can not possibly be any financial concern. And look at the lines at the McDonalds drive thru to buy crap! Morons.
Party on. Gimme two credit cards and a side of consumer junk, to go.
You have to remember that a currency issuing country can still default if it chooses to default, ala Russia in the 90’s.
Congress is stacked with members who are oblivious as to how the monetary system works and it isn’t out of the realm of possibilities that they could decide to default thinking it’s a good idea. Bernanke has said just as much.
Obama has gone on record during the debt ceiling debate last year saying that the US has run out of money and Romney has said he sees a Greek style crisis if Obama gets re-elected. Both have compared the government’s budget to a household budget. Now I know this is a lot of political posturing, but if the leader of the free world doesn’t understand basic Economics 101, you can’t have too much confidence in everyone else running the show.
Government will ALWAYS take the easy way out. If they view defaulting as the easy way out, they will do it.
Romney and Obmaer are both idiots. Neither of them understand one bit of their monetary system. A willful default will see the end of Social Security. It will also see anyone who purchased a US bond, ever, be told to go get fucked. Default will ensure whoever is elected at the time, will be burned at the stake.
All of that is true, doesn’t mean it wont happen.
Ratings agencies said a default on any obligation is still a default and then Obama comes out and says “we might not pay the guy mowing the lawn on capital hill, but we won’t miss a bond payment.” Translation: “We’ll take care of who we deem important, like social security, and don’t really mind screwing the rest.”
You have tea party members on record saying that a default wouldn’t be that bad and were willing to fight for an impossible balanced budget amendment and push the US into default just to get what they wanted. These are elected officials that are undoubtedly elected by Americans who have the same views, meaning they very well may escape being burned at the stake.
You have ongoing rhetoric against the wealthy. That isn’t too far removed from “fuck the bondholders.”
You have other countries in a lot of trouble that are slipping dangerously close to neo-nazi anti immigrant policies. I could certainly see rhetoric of that nature creeping into US politics. That isn’t very far removed from “fuck the foreign investors.”
I agree that the chances of the US defaulting based on economic and monetary forces is essentially zero. But there are a whole host of ways politicians can screw this up and convince the American people that it is actually a good thing and in their best interests. Of course it isn’t, but never discount the charismatic leader with crazy ideas who promises to solve everyone’s problems as long as we make a few difficult decisions first.