usaone
Senior Member
Joined: Dec 21, 2010 9:10:23 GMT -5
Posts: 3,429
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Post by usaone on Apr 12, 2011 15:14:15 GMT -5
We defaulted...kind of...when Nixon took us off the Gold standard.
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Post by robvinchgo on Apr 12, 2011 16:31:18 GMT -5
Patstab,
I'm in agreement with your original post. I think the people crying the loudest (Geithner, Bernanke, Cronies, LLC) have the most to lose. Default would be a great reset button for this country.
The President would take the fall for that in next year's elections. Could it be a Republican strategy?
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usaone
Senior Member
Joined: Dec 21, 2010 9:10:23 GMT -5
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Post by usaone on Apr 12, 2011 16:41:32 GMT -5
We wont default. Interest on the debt is around 260 Billion a year against 15 Trillion a year GDP.
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Post by itstippy on Apr 12, 2011 18:53:51 GMT -5
Washington will default on the $2 trillion in "special" interest-free Treasury bonds owed to the Social Security Administration. Washington will default its debt to the American working class, not its debt to "real" US Treasury Bond investors. Social Security payroll taxes no longer produce a surplus for Washington to spend. It's become an "unfunded entitlement" instead of a "cash cow". "Real" US Treasuries are still a cash cow, so they must not be messed with.
Washington won't actually declare a default on the SS bonds. They'll simply "reform" Social Security and declare that it must return to a pay-as-you-go system. The $2 trillion surplus we boomers have paid in, and that now resides in the form of these "special" bonds, will never be redeemed and payed out.
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silverguy25
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Post by silverguy25 on Apr 12, 2011 21:29:03 GMT -5
Lesser people don't get the IOU's! |
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silverguy25
Junior Member
Joined: Dec 20, 2010 19:11:30 GMT -5
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Post by silverguy25 on Apr 12, 2011 21:39:51 GMT -5
We wont default. Interest on the debt is around 260 Billion a year against 15 Trillion a year GDP. Comparing GDP vers the actual tax revenue, big problem. |
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Post by djrick on Apr 15, 2011 12:52:31 GMT -5
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Post by sangria on Apr 16, 2011 15:19:17 GMT -5
I am afraid itstippy is right. The Social Security Administration treasury bonds will never be paid back.  Our elected officials will pull another rabbit out of a hat. When are those Social Security Administration treasury bonds due to be repaid? When those bonds come due to be repaid and they are not, and instead a rabbit is pulled out of a hat, there is going to be blood in the streets.   "Gonna whack you!" |
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clubv
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Post by clubv on Apr 16, 2011 18:12:40 GMT -5
it would be the best thing that has ever happened in this country other than its formation by our founding fathers
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Driftr
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Post by Driftr on Apr 18, 2011 9:05:41 GMT -5
When are those Social Security Administration treasury bonds due to be repaid? Some were repaid last year when Social Security paid out more than it took in. I believe all will be repaid. What happens after they're all paid out is anybody's guess. My guess is they will not allow the pool to go dry. There will be changes in the people who qualify to receive benefits. Either age will go up, people over a certain income level won't qualify, or some combination of those two. |
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decoy409
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Post by decoy409 on Apr 18, 2011 10:08:57 GMT -5
What would happen?
Well it does not go down exactly quite like that. Bankruptcy Contingency plans were drawn up,outlined and ready to perform when we hit that patch in the road by the IMF,UN,TLC and others. First however things have to get really,really bad. And at the point we are at,the really bad is already here. But the mask has made it more than difficult to see that.
As these over ready pokers are pulled look for some really wild, 'It just can't be' or 'That coud never happen' type things to start popping up and about.
Of course we covered all of this. So now many will simply have to watch and as it unravels, yes it can really be or really happen.
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verrip1
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Post by verrip1 on Apr 22, 2011 21:18:18 GMT -5
But we could still use our dollars in this country, likely not buy anything from another country, which might not be bad eventually. I don't know, just have to see how it plays out. I can't see congress letting it happen though, I think one or the other will cave first. Sounds like people are up in arms over Ryans plan, so they may not be able to hold that together at all. Well, Pat, if you focus on people who only say things you're going to agree with, of course you conclude that everybody is "up in arms over Ryan's plan". It's a self fulfilling prophesy. Geez, it's obvious Dems are going to oppose Ryan's plan vocally, WTF did you expect?  ? That's no damn metric of public opinion. |
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Deleted
Joined: Apr 23, 2024 22:04:39 GMT -5
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Post by Deleted on Apr 23, 2011 0:10:20 GMT -5
It's been on the news of republicans at town hall meetings very upset over Ryans plan, that's what I'm talking about. Well that just depends on which news you are listening to. His plan has been received very well in his home state despite what you are hearing, but I'm not going to look for anymore links for you. www.jsonline.com/news/waukesha/120140159.html |
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Small Biz Owner
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Post by Small Biz Owner on Apr 26, 2011 9:23:59 GMT -5
We won't default technically. Just freeze entitlement programs like Social Security with no COLA increases, and let inflation rise.
Like the past 2 years now.
For 2nd year in row, no Social Security increase - Business - Your ...
Oct 15, 2010 ... The government says there will be no increase in Social Security benefits next
year, the second year in a row without an increase for more ...
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Small Biz Owner
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Joined: Dec 26, 2010 8:43:06 GMT -5
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Post by Small Biz Owner on Apr 26, 2011 9:24:30 GMT -5
We won't default technically. Just freeze entitlement programs like Social Security with no COLA increases, and let inflation rise.
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