On Mon, 17 Mar 2008 07:55:08 -0700, Lim Ericker <netpost@[EMAIL PROTECTED]
>
wrote:
>In article <l8sst394j1sig68tf3rdu671qvs9t82jik@[EMAIL PROTECTED]
>, PaPaPeng
><PaPaPeng@[EMAIL PROTECTED]
> wrote:
>
>> On Mon, 17 Mar 2008 06:15:46 -0700, Lim Ericker <netpost@[EMAIL PROTECTED]
>
>> wrote:
>>
>> >In article <3MsDj.67847$us.36948@[EMAIL PROTECTED]
>, "Dan in
>> >Philly" <djr8@[EMAIL PROTECTED]
> wrote:
>> >
>> >> "Flouride Water" <flouride.water@[EMAIL PROTECTED]
> wrote in
message
>> >> ...
>> >> > It is not possible fo the USA to go bankrupt -- The USA can print
>> >> > unlimited amount of US Dollars!
>> >>
>> >> But the US can't print yen, euro, etc.
>> >> For the US to go bankrupt, the following would have to happen:
>> >> 1. US banks, cor****ations, people all start borrowing in foreign
currency
>> >> 2. Much of those borrowing are spent on consumption, the rest are
put into
>> >> overpriced investments.
>> >> 3. Those investments decline in value.
>> >> 4. The amount we owe to foreign creditors exceeds the value of our
>> >> invested
>> >> assets.
>> >> 5. Foreigners own the US
>> >>
>> >> This could take a while. The value of US capital is around 50
trillion
>> >> dollars. Right now we borrow about 2,3 trillion from the rest of the
world
>> >> (and have 1,2 trillion invested in ROW). It could take a long time
for our
>> >> borrowing to exceed our wealth.
>> >>
>> >> Dan in Philly
>> >------------------------------------------------------------------
>> >so tell us, Dan in Philly -- IF the U.S. did, in your worst case
>> >scenario, become "bankrupt" and be unable or unwilling to pay its
>> >obligations, WHO would become the Receiver and "force" the U.S. to
>> >pay?
>> >----------------------------------------------------------------
>>
>>
>> The way this works is the USD becomes worthless and few if any
>> creditor country will accept the greenback to settle your bills.
>> Since you need im****ted stuff like oil you will have to hand over your
>> family jewels to get that stuff. That's when you realize that someone
>> has already got you by your balls. Hand them over your jewels or you
>> ain't going to get what you need. That's 19th century merchantilism
>> at its best. The developing world people are slow learners but they
>> learn good in the end.
>>
>> No we have no wish to see the US sink for the giant sound of sucking
>> will take everyone down with it. At some point the US will have to
>> cry uncle and get the rest of the world to bail her out. The best way
>> is dropping more money into "worthless" US government paper. Creditor
>> countries are already shying away from them now. This bailout will be
>> at the price of allowing foreign entites own some of American assets
>> such as property, banks and other "strategic assets." I don't know
>> the details and I won't speculate. But that where the whole enchilida
>> is heading.
>--------------------------------------------------------------
>BUT YOU STILL HAVEN'T COME TO GRIPS WITH THE PROBLEM:
>WHO OR WHAT WILL "ENFORCE" OR "FORECLOSE" ON U.S. ASSETS?
>-----------------------------------------------------------------
A sovereign debt is not a debt you can go to a court of law to
collect. As you so clearly pointed out nobody can make the US pay.
But if the US wants its dollar to be accepted so that you can buy
essential im****ts you will have to meet your debt obligations first.
Otherwise your only recourse left is barter. Barter is just another
form of giving up the family jewels. You can refuse to pay but the
debts remain in the books. Unlike people and cor****ations countries
never die.
Its just like a bank making a big loan to you. If you can't pay up
and declare bankruptcy (aka you won't get a cent from me) no bank
will ever extend credit to you again and you are only as good as your
greenback with its pretty printed picture.
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