Rest easy, your buying power will most certainly deteriorate. So, don't worry about that.
Posted on 12/10/2009 6:21:47 PM PST by Lorianne
see link in post below
Related: Dems to lift debt ceiling by $1.8 trillion, fear 2010 backlash http://www.politico.com/news/stories/1209/30417.html
opposition finance minister. We really need him as finance minister as he seem to be the only one who gets it
I predict that the US will default, but not likely on Obama’s watch. He’s only creating a problem to hand to his successors.
Invest in Green ink and Wheelbarrows!
How will the US default when they can print however much they need? Hyper inflation, maybe, but an outright default? I don’t know about that.
I’m more concerned that the buying power of my pension and savings will deteriorate. Sure, I might have thousands of dollars, but will that be enough to buy me enough to eat?
The clowns in DC will keep piling on (and eveb accerating) the spending and regulations right up until the day we default. Count on it!
Rest easy, your buying power will most certainly deteriorate. So, don't worry about that.
Inflation makes Rahm Emmanuel (et al) poorer - deflation makes him richer. Which do you think the administration will pick?
According to Greenspan/Guidotti rule USA already in default
The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world’s largest money management firm, PIMCO, explains the rule this way: “The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support.”
The principle behind the rule is simple. If you can’t pay off all of your foreign debts in the next 12 months, you’re a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured
So how does America rank on the Greenspan-Guidotti scale? It’s a guaranteed default. The U.S. holds gold, oil, and foreign currency in reserve. The U.S. has 8,133.5 metric tonnes of gold (it is the world’s largest holder). That’s 16,267,000 pounds. At current dollar values, it’s worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that’s roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that’s around $500 billion of reserves. Our short-term foreign debts are far bigger
The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months
Well time to start selling off parts of the federal property in the West. There are millions of acres to be sold, the federal government owning a majority of the land in most states west of the mississippi.
sell off gov property, and drill baby, drill
..maybe the Red States could just buy their way out instead of hasseling with the 10th amend or as Tex Gov Perry-sececede....
I'll second that. I've always exhorted, supported and invested in renewables, but our internal energy resources, of every type, are the only way out.
Yes, Guns and Ammo are important, but I would also like to buy some land that I could uses as a defensive base and farm on. Some place where I can find some like minded people who believe in defending personal freedom with a strong attachment to GOD.
They can’t just print more. There is a political limit to what they can print, just as there is a political limit to what they can tax. And there are also economic limits. Look at Zimbabwe. Unlimited printing of money doesn’t solve your money problems. As soon as the voters elect politicians who won’t pay the debt, the debt will not get paid. And ironically, that will solve the debt problem because no one is going to loan money to the US if it doesn’t pay its debts.
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