US Debt Default
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US Debt Default (by Ray-N-Pa [PA]) Oct 6, 2021 3:42 PM
       US Debt Default (by W [CA]) Oct 6, 2021 3:48 PM
       US Debt Default (by 6x6 [TN]) Oct 6, 2021 4:34 PM
       US Debt Default (by 6x6 [TN]) Oct 6, 2021 4:45 PM
       US Debt Default (by 6x6 [TN]) Oct 6, 2021 4:48 PM
       US Debt Default (by NE [PA]) Oct 6, 2021 5:05 PM
       US Debt Default (by Pmh [TX]) Oct 6, 2021 5:46 PM
       US Debt Default (by Pmh [TX]) Oct 6, 2021 5:57 PM
       US Debt Default (by plenty [MO]) Oct 6, 2021 6:01 PM
       US Debt Default (by Pmh [TX]) Oct 6, 2021 6:20 PM
       US Debt Default (by Ray-N-Pa [PA]) Oct 6, 2021 7:17 PM
       US Debt Default (by Ray-N-Pa [PA]) Oct 6, 2021 7:25 PM
       US Debt Default (by JR [ME]) Oct 6, 2021 10:31 PM
       US Debt Default (by S i d [MO]) Oct 7, 2021 8:43 AM
       US Debt Default (by Oregon Woodsmoke [ID]) Oct 7, 2021 10:00 AM

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US Debt Default (by Ray-N-Pa [PA]) Posted on: Oct 6, 2021 3:42 PM
Message:

I was pondering this this afternoon......

What if the US does default on it's debt on the 18th of this month?

Now before anyone says something like its not going to happen, let me remind everyone that we are only two weeks from it happening.

So that said, it would be my believe that if the US would default, the US dollar would be suddenly devalued by the shock that it isn't the world standard with a spotless record. So what would be the consequences of a sudden devaluation?

Well things measured in dollars like Gold, Oil and real estate would suddenly spike in price. But the effective value would remain the same - a barrel of crude is going take you the same distance if it is $50 or $200.

How do you combat devaluation? You aggressively raise interest rates to make the currency more attractive. At that point, the money in real estate becomes in the financing and not the asset.

Just thinking out loud --24.101.xxx.xxx




US Debt Default (by W [CA]) Posted on: Oct 6, 2021 3:48 PM
Message:

After some tumultuous disagreements, the House of Representatives voted to suspend the nation’s debt limit until Dec. 2022. Government punted. Yet it all seems like an orchestrated game. Like they are trying to put the public on edge. Neither political party wants to take the blame for an economic collapse, which appears inevitable.

Bill Sardi on Lewrockwell dot com --174.65.x.xxx




US Debt Default (by 6x6 [TN]) Posted on: Oct 6, 2021 4:34 PM
Message:

"As the government continues to bail out financial institutions and finance these rescues with government debt, one might wonder whether a default on Treasury debt is imaginable. It is–in 1933, the United States intentionally defaulted on its Treasury debt, an action that was supported by both Congress and the Supreme Court." Alex J. Pollock --73.120.xx.xxx




US Debt Default (by 6x6 [TN]) Posted on: Oct 6, 2021 4:45 PM
Message:

Probably a loss of a lot of jobs thus increasing the loss of production that we already have.

Would those on SSI, SS, Medicare providers, et al get paid?

US credit rating would go down.

Would the oil in my garage increase in value?

--73.120.xx.xxx




US Debt Default (by 6x6 [TN]) Posted on: Oct 6, 2021 4:48 PM
Message:

crypto currency may take hold --73.120.xx.xxx




US Debt Default (by NE [PA]) Posted on: Oct 6, 2021 5:05 PM
Message:

Someone told us Wall Street fell, but we were so poor that we couldn’t tell. --24.152.xxx.xx




US Debt Default (by Pmh [TX]) Posted on: Oct 6, 2021 5:46 PM
Message:

US will not default. if it did there would be immediate global depression the likes has never been seen before. everyone knows that. debt ceiling will be raised. again. am a finance guy. not sure why we even pretend to have “budgets” --107.77.xxx.xxx




US Debt Default (by Pmh [TX]) Posted on: Oct 6, 2021 5:57 PM
Message:

6x6: the US has never defaulted. You misunderstand what happened in 1933. --107.77.xxx.xxx




US Debt Default (by plenty [MO]) Posted on: Oct 6, 2021 6:01 PM
Message:

RayinPA explain this a bit more, you wrote: At that point, the money in real estate becomes in the financing and not the asset. --172.58.xxx.xx




US Debt Default (by Pmh [TX]) Posted on: Oct 6, 2021 6:20 PM
Message:

To Plenty: Ray has it backwards. rates will go lower in a deflationary spiral. but on flip side asset prices will go up since cost of $ is cheaper so buyers can finance more. --107.77.xxx.xxx




US Debt Default (by Ray-N-Pa [PA]) Posted on: Oct 6, 2021 7:17 PM
Message:

If the US would not pay its debts, the rates offered on T bills and bonds would have to go up to incentivize the risk people would be taking about the US not paying debt again.

--24.101.xxx.xxx




US Debt Default (by Ray-N-Pa [PA]) Posted on: Oct 6, 2021 7:25 PM
Message:

So in the 1970's when US got hit by a double whammy - a shift off the gold standard and then an oil crunch after an embargo, rates spiked and inflation jumped.

Great news your $30,000 was suddenly worth $45,000. But with interest rates also marching upward, no one could afford to buy your home.....if it was $30,000 or $45,000 because the rates were higher than most credit cards today for investors. So what is the value of an asset that goes up in value, but you can not sell?

But what is the value in knowing how to do wrap around financing, creating mail box money buy being the bank while harnessing the sudden appreciation? --24.101.xxx.xxx




US Debt Default (by JR [ME]) Posted on: Oct 6, 2021 10:31 PM
Message:

Don’t let leftist Democrats scare you. Payments for interest on the national debt is less than 5.4% of all federal spending. The government would have more than enough to pay its debt without a debt ceiling increase. The socialists would have to trim 6% of everything else or the equivalent to cover the debt service. --98.13.xx.xxx




US Debt Default (by S i d [MO]) Posted on: Oct 7, 2021 8:43 AM
Message:

They won't default. It's too easy not to....for now. Magic money machine go "BRRRRR...." Everything now it like a game of chicken to see which side will blink or veer off course first. One side will eventually cave once they've proved to their constituents that they "fought hard for their interests."

I posted yesterday in COVID Rent Relief that I don't think money is "real" anymore. No, I'm not giving away my fake money just yet: there are still people who will give me real things in exchange for it, and until that changes I'll keep it flowing thru the fingers in exchange for actual stuff. It may not be real, but it's not worthless....yet.

But the time is coming (and is already here somewhat) when the amount of money available will be so vast compared to available goods and services that the value of currently held money will rapidly diminish. Thus, money will lose one of it's defining attributes as a store of value. When value is rapidly destroyed faster than it can be exchanged, money is no longer real. We will see this in the form of high/hyper inflation. It hasn't happened yet, but all the conditions are right for it to hit whenever and wherever with little notice.

I'm not worried for now, but I am preparing. Stock your shelves now while there is still plenty to stock. "The wise man's house is filled with stores of choice food and oil..."

--108.230.xxx.xx




US Debt Default (by Oregon Woodsmoke [ID]) Posted on: Oct 7, 2021 10:00 AM
Message:

Every time there is a new budget to be passed, the US is within days of defaulting and going bankrupt and nobody is going to get paid.

Every time. Sorry, but the threat has lost it's shiny new terror for me. It's just the same BS as always. --76.178.xxx.xxx



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