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RE: Debt Default - no way!

[wizwiz]

So markets very nervous about Debt default, but you have to know there is NO WAY the US will allow a default
- simply NO WAY!

Indicator,
The U.S. has already defaulted. It is just that most people haven't figured it out yet. The U.S. gov't defaulted on Aug 15, 1971. Ever since then they have been spending like crazy fools and kicking the can down the road. Well, the can is now $14 trillion in size and Obama wants to increase it to $16 trillion. The public is waking up to the debt crisis and are starting to take it seriously. None of the programs put forward by the Republicans or the Democrats have a hope in *ell of reducing the debt. It is a joke. In 10 years, if the U.S. economy is still around, the debt will be close to $20 to $24 trillion even with the "spending cuts". As of today, if you count the liabilities for social security and medicare which is unfunded, the U.S. is in debt in excess of $70 trillion. Once interest rates rise, all *ell will break loose. The U.S. is obligated to pay cost of living increases to its employees and pensioners, and if the interest rate on the debt will rise from 3% to 8% then a lot of the GDP will be used to just pay the interest on the debt.

The U.S. will pay its bills on Aug 3 no matter what happens to the debt ceiling. The Aug 2 deadline was an arbitrary date chosen by Timothy Geithner. The rating agencies claim they will downgrade the U.S. bonds if the Aug 2nd deadline is missed. The rating agencies are only doing what the Wall St. banks are telling them to do. Wall St makes an enormous amount of money by increasing the debt load of companies, individuals, and countries. They want the gov't to get deeper into debt so they can make more money by creating loans which is really creating money out of nothing using fractional reserve. The U.S. $ has lost 40% of its purchasing power since 2000. I feel the U.S. $ will become nearly worthless in 10 years, if not sooner. We are seeing the effects today in higher food and commodity prices. It will only get worse as the Fed prints more money.

The U.S. will never recover from this debacle. The stock market may recover for 6 months or even a year, but what we are hearing now is the death knell of the U.S. economy. There is absolutely no way on heaven or earth the debt will ever be controlled. It reached the tipping point during the Bush years when he funded two wars and cut over $1 trillion in taxes. Obama is now in 3 wars and more if you count Pakistan and Yemen. Let's not even consider Iran or Syria.

You cannot get out of debt by borrowing more money. Any 7 year old knows that. Unfortunately most of Congress is not as smart as a 7 year old.

Sorry for being so long winded. But what happens on Tuesday is inconsequential to the real economy that is unraveling.

Wiz