Great Post Sir;
I respectfully disagree though. As one who has experienced tens of millions of dollars in claims (debt) in the real estate development business as a result of an environmental lawsuit against a project of mine, I can tell you that those in government with a brain DO NOT “intentionally” want to go the “abbrogation” of debt route.
I never filed BR and worked my way out of the mess. But, it took a decade to do it! Remember, simply refusing to pay off your debts is one thing (abbrogation), a default, which could be temporary and principle partial, is entirely another thing. I see a default, yes, “abbrogation” (simply refusing to pay ANYTHING on the debt), NO WAY! And, there is a HUGE difference. In my not so humble opinion, since compared to the public at large, I am very painfully experienced in this subject, the U.S. is better off declaring a default now and “settling” these debts rather than printing billions of worthless dollars to try and fraudulently buy it’s on debt. Wow!...wish us mere citizens could do that....i.e. print up some money and pay our debts!
I once had a 4.8 million loan (secured). It’s a long story but rather than file BR I “settled” it for $88,000.
The U.S. and World Governments will get in a room someday and “settle” these debts and life will go on, albeit much more painfully, for all of us.
The good news is that the “masses of purely stupid Americans” will finally come to their senses and realize that 535 legislators backed by a President and 9 corrupted judges simply cannot be allowed to borrow money, except in time of declared war, period. This means an effective and binding Constitutional Prohibition against the Federal Gov’t borrowing money.
I imagine that China and others will get around ten cents on the dollar, if they are lucky and depending on whether or not we have someone like Christi or Palin doing the negotiating on behalf of the American people or an imbecile like Obama. But, China will shrug it off and keep on producing CHEAP goods and selling them to us!
Either way, default, inflation, or settlement the average Joe taxpayer gets killed. I'm now spending my assets rather than saving for a rainy day. I cant help but get a little sick at the thought that I'm spending my future now. I just don't want the government to seize it or inflate it or change the rules and make it worthless.
Some great people on FR. I like to read people's thoughts, opinions and analysis more that the articles themselves.