In article <b12tt3po8qmhpg015ag2vav250i2k5ibbh@[EMAIL PROTECTED]
>, PaPaPeng
<PaPaPeng@[EMAIL PROTECTED]
> wrote:
> 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.
------------------------------------------------------------------
So if the U.S. defaults -- refuses/declines to pay its creditors, they
won't love us any more or lend us any more money. The U.S. would then
be "forced" to revise its economy to be self-sufficient. Painful
maybe, but not fatal. Maybe better.
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