tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
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Post by tloonya on Jun 18, 2011 12:40:17 GMT -5
What is this talk about if goverment will not act dollar will default in August? And what ta heck is default of a dollar?
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bring in the new year
Well-Known Member
Happy Thanksgiving!
Joined: May 3, 2011 17:28:52 GMT -5
Posts: 1,966
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Post by bring in the new year on Jun 18, 2011 12:49:32 GMT -5
Tloonya,
I think what you're talking about is the national debt.
There's a limit to the amount of national debt the US can carry. Congress has to vote to raise that debt ceiling (which they usually do). If they don't then the government shuts down.
Which means they don't pay interest on the bonds. Which would be a default.
US treasuries, bonds, currency currently has a very high rating because they've never missed a payment and treasuries and bonds are backed by the US government. If they do miss a payment, it means we'll lose the high rating, we'll have to pay more in interest to get anyone to buy our bonds and we'll make everyone far more worried about our currency.
Let me know if it was a different issue
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Virgil Showlion
Distinguished Associate
Moderator
[b]leones potest resistere[/b]
Joined: Dec 20, 2010 15:19:33 GMT -5
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Post by Virgil Showlion on Jun 18, 2011 12:58:53 GMT -5
Various economists (most notably in China) have claimed that the US has already per se defaulted on its debt by depreciating the USD at high speed. This does not meat the technical definition for "default", however.
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tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
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Post by tloonya on Jun 18, 2011 13:15:00 GMT -5
But this had already happened a month? ago...
Were my clients reading old newspaper?
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Deleted
Joined: Oct 5, 2024 13:24:53 GMT -5
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Post by Deleted on Jun 18, 2011 13:38:07 GMT -5
No. They just pushed off the date by raising the ceiling. We're approaching the ceiling again.
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Deleted
Joined: Oct 5, 2024 13:24:53 GMT -5
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Post by Deleted on Jun 18, 2011 17:53:09 GMT -5
This is typical Washington.. There is the deadline, the more real deadline, and then the true deadline. And even the last one is up for debate. We have plenty of revenue to pay our interest payments to bond holders to avoid the world ending default.
The Republican's are overplaying their hand here and the risks are huge. I'm lobbying to have "None of the above" added to all federal voting ballots.
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Deleted
Joined: Oct 5, 2024 13:24:53 GMT -5
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Post by Deleted on Jun 20, 2011 8:07:10 GMT -5
Various economists (most notably in China) have claimed that the US has already per se defaulted on its debt by depreciating the USD at high speed. This does not meat the technical definition for "default", however. Yeah, China should talk. LOL. |
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tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
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Post by tloonya on Jun 22, 2011 12:06:44 GMT -5
Archie THE Dragon? Where is THE came from?
Please do tell why China should not talk? I love hearing about China...
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Deleted
Joined: Oct 5, 2024 13:24:53 GMT -5
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Post by Deleted on Jun 22, 2011 12:09:20 GMT -5
Because China (the 2nd largest or largest economy in the world) manipulates its currency to keep it low so that its good are cheap on the world market.
I don't want to hear about them complaining about our currency.
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Small Biz Owner
Familiar Member
Joined: Dec 26, 2010 8:43:06 GMT -5
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Post by Small Biz Owner on Jun 22, 2011 13:47:14 GMT -5
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