I am hardly an avid visitor to this forum, but got a question for the smarter folks here to help me understand something... There has been alot of talk the past year or so about the possibility of Greece defaulting on its debt. According to the news, other countries could also find themselves in similar troubles over the next few years. Was it because Greece's debt was close to or above its GDP that made it near unable to pay its debt?? In a recent article i read, it noted "...U.S. public debt, already three times its relative size three decades ago, is fast approaching 100% of GDP". So what happens when the US debt equals or surpasses our GDP?
Simple. The President will declare us too big to fail and ask Congress for a 10 trillion dollar stimulus package. But, seriously, I don't think anyone knows. But, we are certainly going to find out. And I bet it isn't pretty.
Theoreticaly your creditors go into panick start to sell the dollar short, call in debts you sell your gold and silver reserves to try and prop up the currency but fail as the crisis worsens, then you go bankrupt and your economy crashes, you have hyper inflation and go the way of a number of latin American countries Other than that not a lot oh sorry forgot the riots over bread and bank collapses (loss of savings)
Kentucky Fried Movie: The worst criminal of all before the ( speling) Empoerer for the worst possible punishment: : Send him to Detroit : LOL Come on folks, the op has a point here and Steve is accurate. It is not a comedy.....watch history, learn history.....we were taught it could never happen to us, but if we keep this up, it will happen.....not to us but our children and grandchildren.
'Armageddon' was the second thing that came to mind from De Orc's description. Detroit was, of course, the first.
I live just outside of detroit, its not quite as bad as you folks portray during the day. The true party begins at sundown. From what i have seen the last 20 years, America went from having plenty of open space between our dept to GDP ratio, to having very little. Whatever happens, if left unchecked, will not happen in our grandchildrens time, and i doubt it will wait for our childrens time - it will be now, or rtather sooner then later - it will happen in our time. I dont follow politics too closely, and reading alot of the threads/comments on this forum, i am left to think you folks are alot smarter then i am about this - hence my original question. I thought the worst, but really wasnt sure what would happen if the US dept surpassed or even crept too much closer to our GDP. We saw what happend to Greece most recently, and other countries in the past like Italy, Israel, Venezuala, Iraq, Bosnia, Germany (the list could go on and on) and the after affects of their downward spiral to the value of their currency. We simply cannot 'let things be'; to sit back and let someone else fix the problem! Our politicians love to spend money they dont have. When will they stop? Will they stop by voting them out of office? Heck no, because the newly elected guy will be just as bad, and usually worse. America has enough of the population looking for free handouts, and politicains are more then happy to provide any service they can for free that will help them get re-elected. Our politicians will not stop their reckless behavior without force. Socialism is proven not to work, and yet here America is, one foot in the door of Socialism, the other long left the threshold of Democracy. For those against the truly Socialist society, it looks as if America wont find itself in the throngs of a fully Socialist society, becuase we will bankrupt ourselves long before. Revolutions have been started for less.
One difference between us and Greece...not too many people will be standing in line to, or even able to, bail us out.
Daggerjohn.....We met at the MSNS show in Detroit a cpl years back.....I had no idea you were politically envolved....please keep up the posts...you raise some very good points !!
It's all just "good business", you darn "anti-capitalist". Cash rules. It's all that matters. There is nothing more important. Any attempts to discredit this corporate commandment are simply the result of whining lazy losers. Didn't you get the RNC's latest bulletin? The ONLY thing more important than cash is MORE cash. The effects on the society as a whole matter not. CASH=SUCCESS....at any cost, even if you have to kill your mother, or other people's kids. CASH is our God. If you disagree, you're scum.
Before people start lining up to destry the US economy, remember that lots of countries have in interest in keeping ours afloat. China owns too much of our debt, to be sure, but the collapse of our economy in such a situation will drag the Chinese down with it. The Eurozone is having some "issues" here lately (I saw an article recently in the Economist asking if the Euro will survive another generation). During the Great Depression, unemployment in the United States got over 20% more than once, and there was no Revolution, nor even bread riots of any real significance. Americans don't, yet, have the same sense of entitlement that the Greeks do, so our government spending, believe it or not, isn't on the same level as theirs.
