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When will the US default on their debt

When will the US default on their debt?

  • They will not default on their debt, they will follow Japans example of long term economic decline.

    Votes: 5 50.0%
  • The US will default on their debt in the next 5 years.

    Votes: 1 10.0%
  • The US will default on their debt within 10 years.

    Votes: 0 0.0%
  • The US will default on their debt in the next 20 years.

    Votes: 1 10.0%
  • I dont know...

    Votes: 3 30.0%

  • Total voters
    10

Maximus Zeebra

MoG
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The US is clearly heading in the wrong direction.

-Budget deficits are record high, 50% of all spending is deficit
-Unemployment is very high
-Yet inflation is high
-Stimulus spending has kept the US economy, the FED have no more tricks left, more stimulus will further devalue the dollar and the US economic stance in the world. Even more reserve will move out of dollar to other currencies, mainly the Euro.
-The Dollar is extremely low against the Euro, despite all the focus on the Eurosone countries sovereign debt
-The trade deficit situation has not improved
-Investments are streaming out from the US into Asia and Europe

The US is basically facing economic implosion, yet taking on more debt. Or is it taking on more debt knowing the economy will implode?

US has reached 100% debt compared with GDP. This is only lower than Greece and Italy in the Eurosone, and much higher than the Eurosone average.

The question then is, when will the US default?
 
Hopefully never. The world wide economic effects would be catastrophic.
 
Hopefully never. The world wide economic effects would be catastrophic.
Well prepare yourself then, the U.S. dollar is probably going to loose it's status as the world's default currency. America is the Titanic and at every election for the last few generations all we have been doing is moving the deck chairs around and all the while we are still headed for that iceberg.
 
The US is clearly heading in the wrong direction.

-Budget deficits are record high, 50% of all spending is deficit
-Unemployment is very high
-Yet inflation is high
-Stimulus spending has kept the US economy, the FED have no more tricks left, more stimulus will further devalue the dollar and the US economic stance in the world. Even more reserve will move out of dollar to other currencies, mainly the Euro.
-The Dollar is extremely low against the Euro, despite all the focus on the Eurosone countries sovereign debt
-The trade deficit situation has not improved
-Investments are streaming out from the US into Asia and Europe

The US is basically facing economic implosion, yet taking on more debt. Or is it taking on more debt knowing the economy will implode?

US has reached 100% debt compared with GDP. This is only lower than Greece and Italy in the Eurosone, and much higher than the Eurosone average.

The question then is, when will the US default?

The US is in no imminent danger of financial collapse. In the long term, there are some fiscal imbalances that will need to be solved: specifically health care, social security, and taxation. But the US isn't going to default anytime soon.

The weak dollar is a good thing, and will solve the trade imbalance problem (inasmuch as a trade imbalance can even be considered a "problem") because it will make US exports cheaper and US imports more expensive.

And most of the US government's debt is denominated in US dollars, which means the US will never default if it doesn't want to. The problem with Greece, Ireland, and Portugal is that they're stuck with a currency over which they have no control. That's not the case in the United States.
 
The US is in no imminent danger of financial collapse. In the long term, there are some fiscal imbalances that will need to be solved: specifically health care, social security, and taxation. But the US isn't going to default anytime soon.

But there is an imminent danger. The US state debt is much worse than the Eurosone, the deficit is massive, the tendencies are bad, and we are still not putting the loop on indebted individual states and cities with massive debts, local communes and so fourth.
In addition the populace is very indebted, and firms are massive indebted and running massive trade deficits.

People are starting to look at this, which is the reasons the dollar is about to be record low against the Euro, even with all the negative focus on the Euro.

You Americans should fear this quite, because when all your credit lines run out, the biggest shift of wealth in the history of mankind will take place.

The weak dollar is a good thing, and will solve the trade imbalance problem (inasmuch as a trade imbalance can even be considered a "problem") because it will make US exports cheaper and US imports more expensive.

Yes, this is a good thing to rebalance the economies. Certainly is, but for average Americans, it will be quite hard to adjust to the realities of this situation.
-You will have to work harder
-At the same time, you will buy less
-More of the hard earned money will go back into paying increased taxes and federal debt

And most of the US government's debt is denominated in US dollars, which means the US will never default if it doesn't want to. The problem with Greece, Ireland, and Portugal is that they're stuck with a currency over which they have no control. That's not the case in the United States.

What? The US will have to default when it cannot live up to its promises. It doesn't matter what denomination the debt is in. If the debt is not payable, then there will be a default situation.

Greece and Portugal who had currencies they devalued all the time, if they were not in the Eurosone would keep devalue their currencies, avoid reform, and make their populations poorer and poorer just to be able to export more junk.
Germany for example, their export is increasing, even if the Euro price is increasing. Now that is export that is needed, and an economy that doesnt need. Germany has made some hard core reform, and come out on top. The problem of Portugal and Greece is that they managed to avoid many of the necessary reform, by taking on low interest debt once they were in the comfortable Euro currency.
 
We should wait till Donald Trump is president. I guess we could just ask him what we should do now. He'll want to send Iraq and Afghanistan an invoice for liberating their asses. I think invoices would be sent to lots of countries.

Before we do anything completely embarrassing.
 
Realistically the US has already defaulted on its debt

The Fed is Reserve and Treas are reportedly buying over 60% of the debt being issued by the federal government. Which in my personal opinion is the equivalent of a government defaulting on its debt

As for Trump, having gone through bankruptcy a few times he should be able to lead the US through it a few times as well
 
Realistically the US has already defaulted on its debt

The Fed is Reserve and Treas are reportedly buying over 60% of the debt being issued by the federal government. Which in my personal opinion is the equivalent of a government defaulting on its debt

As for Trump, having gone through bankruptcy a few times he should be able to lead the US through it a few times as well

He is a multi multi billionaire. Do you think he owes anybody any money? Did he get that money by making bad decisions? Or by making very good decisions. I wish people could get over their jealousies so we can fix this broken country.

When I go to Europe next time I am not going to show off that I'm American by leaving American cash tips. It's pounds, yen, and rupees for me. It's too embarrassing any more.
 
He is a multi multi billionaire. Do you think he owes anybody any money? Did he get that money by making bad decisions? Or by making very good decisions. I wish people could get over their jealousies so we can fix this broken country.

When I go to Europe next time I am not going to show off that I'm American by leaving American cash tips. It's pounds, yen, and rupees for me. It's too embarrassing any more.

Trump`s business have gone bankrupt many times, given that he is primarily in real estate development his companies are going to be in hawk to bankers at very high levels
 
Hopefully never. The world wide economic effects would be catastrophic.

...and that my friend is exactly why every nation and state need to get their **** together. The US in particular is not getting their **** together.
 
I don't think we'll default - I think we'll get a handle on our issues, actually, and reverse this obnoxious and careless trend.
 
Trump`s business have gone bankrupt many times, given that he is primarily in real estate development his companies are going to be in hawk to bankers at very high levels

Just all part of business. Karl Ikahn has gone bankrupt. No idea how to spell it.
 
I don't think we'll default - I think we'll get a handle on our issues, actually, and reverse this obnoxious and careless trend.

Certainly lets hope so, the problem seem to be that the US is taking on even more debt the deeper into debt they go.
 
Please, concider watching this. :)
 
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