money put in treasuries is not going in to the economy or into products that people want,
>> If the interest rate goes up (which of course it will from a ratings downgrade or default) taxpayers will be holding the bag for the higher rates of interest on treasuries, on top of the current debt.
It seems to me that that money would go into the productive economy.
>> Eventually, if there was anything left after the bankruptcies and riots. We need a systematic and continuous approach to spending reduction rather than an abrupt meltdown.
Sorry, you’re not gettin’ a systematic or continuous approach to spending reduction. These pols are not the answer. They can NOT fix this. They are constrained by their own political posturing and arse-feather-tickling that they don’t have any mechanism for dealing with a problem this big. Problem, hell the PROBLEM is the administration of the USA is rudderless in the face of the storm. And it’s the admin that’s CREATING the storm. No, we’re going down. Nothing any of them can do about it. Boner and Reed are peacetime pols. When we can afford crooked politicians and the best don’t get into the field because they don’t need it. In war hopefully we get the best, like Lt. Colonel Allen West up in there to represent. And keep it real.
Well we raised the debt ceiling and still our credit rating went to AA+ because S&P does not believe that we are serious about our debt problem, now Biden is getting a lecture form our banker the Chinese. But you notice that our bond interest rates continued to go down, because were the safest place to put your money in a world of such massive debt that no one will be able to pay the money back. At this point the dollar is funny money only slightly better than the Mark in Germany in the 1920’s, and it will likely have the same end, being burned in the fire place to stay warm.
Buy a little Gold or Silver coins so when fiat money fails you will have something to weather the storm, if that isn’t possible buy food and store it, even three or four month will stop you from panicking and making a terrible error in judgement in a time of trouble.