Posted on 03/04/2011 2:03:09 AM PST by Rummyfan
Steyn is being very generous when he says we have 2 years as the world’s currency reserve. It might take that long to implement it, but the decision to TRY has already been made by various players in the game.
I think he’s right, that the GOP leadership doesn’t “get it”. Sadly, the media seems immune to grasping the problem as well, which is amazing, because they would be some of the first to scream bloody murder at losing their wealth.
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Various people here have said that GOP needs time to cut the budget. From what they’ve been saying and doing, I don’t think time is the issue. They don’t get it. They won’t really try. I don’t see a happy ending here.
I suppose he would rather our elected officials just pull a Wisconsin. Throw up their hands, flee the capitol, and run around their districts with vulgar disgusting signs.
Steyn ping
I’m beginning to wonder if we’ll soon have military coups in Western Democracies, in order to simply survive.
Steyn puts it in a nutshell for us.
You are absolutely right. There are plenty of faithful Republicans on this site who will defend what Republican leadership is doind in D.C. There is no sense of urgency among them. They are so proud of cutting $60 billion dollars, while the deficit is $1.6 trillion for the year.
Perhaps the majority of Americans won't be happy with drastic budget cuts. And perhaps the cuts wouldn't get past the Senate, or past Obama's veto. But if you don't try, you won't have any excuse when the whole house of cards collapses. And the collapse is imminent. The only ones who will be able to hold their head up high will be those who called for drastic cuts, no matter how unpopular those cuts were.
I think we’re the ones who don’t get it. The politicians know we’re screwed.
I would support that. Shut down the government for real. Not just a temporary shutdown due to lack of funding. Board up the windows and doors. Throw a going out of business sale and call it a day.
I will be amazed if the USD is still the currency reserve by December of this year.
Sometime between the end of June and the end of December, reserve currency status will be de-facto ended. The USD will then devalue by 80%.
Yes, 80%! This is because the debt-per-taxpayer on the current debt comes to about 24,000 a year. The highest conceivable level of personal taxation that can go into repaying that is ~ 10%, so the average wage must rise to 240,000 a year. Which is a ~ five fold increase from todays average wage of 45000 USD.
Do not be in (USD) cash after June 30th. If you are then at some point you will be wiped out.
Perhaps a little perspective is needed:
A million seconds is 12 days.
A billion seconds is 31 years.
A trillion seconds is 31,688 years.
So GOP, tell me again what BIG deal 60 Billion is.
No longer having the worlds reserve currency is a big deal but not that big a deal. No longer having the worlds reserve currency with a debt to GDP ratio greater than 100% is a very big deal, we’re-going-to-have-to-let-grandma-die level of big deal. I give that three to six years.
Even the freshmen think balancing the budget in 7 years is good enough. They are wrong. There will be some sort of crisis in the next seven years and that will sink us unless we have the discipline to live within our means now. Note that the time from the 1994 to 2001 was seven years.
Note that a lot of our US Debt bonds are short term bonds. We got a better interest rate that way. As they roll over, our debt will climb way higher.
Fine, shut down the government but don’t expect the leftists to sign onto our budget demands. Not going to happen.
You don't follow my meaning. I'm not saying shut it down as a temporary tactic. I'm saying SHUT IT DOWN---permanently.
You have an effective turn of phrase, LOL.
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For the thread: I fix upon June 30th because that is when QE2 is slated to end: the markets have already priced in QE2 ending on that date.
Only it will not end. The US will not have sold assets nor meaningfully addressed its spending by that date - because Obama is still President. Therefore QE2 MUST carry on under some guise or other.
Nobody will buy treasury bills under a QE_infinity regime, and the interest rate cannot be significantly increased without geometrically increasing debt service payments. So the current high (70%) takeup of bills by the Fed will move towards 100%.
Once QE_infinity begins: Foreign Governments will look for ways to distance themselves from use of USD as a reserve - not because they hate America, but out of simple self-preservation.
The timing of how quickly that happens is pretty much a guess. I think it will happen between June and December. Others give it a year or so. But for all we know the currency will begin to de-reserve and de-value on the 4th July.
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