Remember the Weimar republic?
Remember the Weimar republic?
In reference to my emphasis... The problem is that this would then keep the value of the dollar low, which would mean Americans would have far less purchasing power and most of our imports would never return.We would also lose much of our imports do to the bankruptcy. This while bad short term could actually have a very positive outcome. We would once again manufacture most of our goods and not be losing hundreds of billions a year in trade deficits.
It would also help to insure that countries would be hesitant to loan us money. This would help keep the government spending in check. No more blank check for government spending.
While Im sure it would be bad short term I could see it having the potential to benefit us in the long run. We have been living beyond our means for decades. Its about time we correct this.
Defaulting on our debt would likely be catastrophic in the short term. I doubt the union would survive. However, Paul did not propose anything of the kind.
You are aware of how negatively the world markets responded to the suggestion that a tiny nation like Greece may default. Imagine if the richest country in the world did that. It would be ruinous - not just here, but worldwide.
Defaulting would not allow them to take any part of California. In fact, they are only able to buy land from American landowners because we honor the debt.
I don't think you know what happens in case of bankruptcy. What happens, is the dollar becomes monopoly money.
Inflating our way out of it leaves the dollar with some value, but not much. A landowner may or may not be willing to take it based on his understanding of its value. But every American would get a crash course in what money actually is.
Last edited by BayToBay; 07-02-11 at 04:10 PM.
My vote is for doing what Paul actually suggested rather than doing what the misleading poll question suggests.
Bankruptcy for a country is not like bankruptcy for you and me. We declare bankruptcy within a framework of legal protections for both debtor and creditor. The courts force us to give up some of our assets and in return our creditors promise not to shoot us. No such framework exists for nations. If the US declares bankruptcy, we are bascially telling our creditors to go to hell. They can try to get it back and the likely reaction would be to send them some of the missiles we bought with their money.
A tip for the lefties. Ron Paul aint Michelle Bachmann.
Last edited by jamesrage; 07-02-11 at 09:11 PM.
"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear"
Cicero Marcus Tullius