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US default......or not......

Windwaver

By Windwaver,
in Lite & EZ

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Wt_know

Wt_know

Supersonic
(edited)

kick ar kick .... just kick the can down the road ... 60 years? i say probably 100 years and more to pay up debt reaching 20 trillions!

 

28b7ku1.jpg

 

 

I think USA is the only country that can live on by using one credit card to pay another card without the fear of not able to pay up.


the one day when the world don't give a fcuk whether USA default or not is De-Americanizing where USD is as good as toilet paper

 

http://www.youtube.com/watch?v=3hnLmKVXcuo

Edited by Wt_know
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Wt_know

Wt_know

Supersonic
(edited)

seriously, i don't think USA can ever pay up their DEBT .... 17 trillions is no way

 

even USA economy pick up ... as we all know when they got surplus ... they start to enjoy and use money like open water tap

 

it's like you have a friend who owe you money ... when he got extra money ... he will go MBS or KTV for a night fun ... he is not going to cut his flamboyant lifestyle to bare minimum and try to pay every single cents back to you

Edited by Wt_know
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Vega

Vega

Turbocharged

seriously, i don't think USA can ever pay up their DEBT .... 17 trillions is no way

 

even USA economy pick up ... as we all know when they got surplus ... they start to enjoy and use money like open water tap

 

it's like you have a friend who owe you money ... when he got extra money ... he will go MBS or KTV for a night fun ... he is not going to cut his flamboyant lifestyle to bare minimum and try to pay every single cents back to you

 

since the situation is already so hopeless, why bother to save and pay up? just enjoy first. let the next gen pay for it. [lipsrsealed]

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ShepherdPie

ShepherdPie

5th Gear
(edited)

seriously, i don't think USA can ever pay up their DEBT .... 17 trillions is no way

 

even USA economy pick up ... as we all know when they got surplus ... they start to enjoy and use money like open water tap

 

it's like you have a friend who owe you money ... when he got extra money ... he will go MBS or KTV for a night fun ... he is not going to cut his flamboyant lifestyle to bare minimum and try to pay every single cents back to you

 

 

i think the difference is that that this friend goes around spending $$ on Chinese goods/services.

If this friend stop spending, China also liao.

Its more like the gambling den loan $$ to a gambler.

 

The day come when the world/China econ does not depend on US spending. That when US has to pay up with their land and everything they got. :)

 

The very first things, i hope are the treasures that they stolen from China.

Edited by ShepherdPie
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Enye

Enye

Hypersonic

Here is another line of thought from HWZ

 

I guess your economics teacher never tell you that IOU is also just a piece paper (a paper claim) and when it becomes zero value, there is no wealth destroyed and not everything is lost when you and I are taken together. The factories, roads, and everything are still around and they are the real wealth. Only the paper balance sheets of the parties concerned are affected and they merely have to make adjustments to their production and consumption patterns.

 

An IOU is an asset on your balance sheet while it is a liability on my balance sheet. It is eliminated (disappear totally) if we do a consolidated balance sheet of you and I. So whatever value the IOU is in the balance sheet, it has no bearing on the consolidated balance sheet because it is just a paper claim between the 2 consolidated parties.

 

If you cannot understand the concept of "consolidated", I use a simple analogy.

 

Your wife overspends and issues an IOU to you every month as you lend her money for her expenditures.

 

After many years, she owes you $100,000 in IOUs and so your wife has a debt of $100K while you have a "reserves" of $100K in IOUs from your wife.

 

However, what is the wealth reserve of your household (wife + you)?

 

As a household, you have actually zero reserves and the $100K IOUs are just pieces of paper. If the IOUs become zero value, there is no wealth destroyed and your wife and you as a whole do not suddenly become bankrupt. Your house, car, jobs, kids are all intact. You can choose not to ask your wife to repay but continue to lend her more money and continue to live like in the past, or both of you adjust your lifestyle so that your wife spends less while you spend more.

 

Of course, you can also choose to divorce your wife but there are severe negative consequences.

 

somewhere along the line, you forgot about the impact of defaulting on interest payments

 

:D

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Wt_know

Wt_know

Supersonic
(edited)

it's more like you scratch my back, i scratch yours in closed doors

then come up in front of camera ... both sides said they did everything they could for the love of American ... pui

 

 

 

they are playing 'who blink first' :huh:

Edited by Wt_know
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Shull

Shull

Turbocharged

 

 

they are playing 'who blink first' :huh:

 

It's the conservatives in Republican side which are playing the hard-to-pass game. They have this stupid rule (forgot the name) that if 50% of the Republicans in the House of Representative (House) don't agree in advance to vote "yes", the speaker of the house (which is a Republican, since Rep has majority in the House) cannot put whatever issue up for a vote.

 

So end up, they'll have this kind of situation:

 

Assuming the House has 120 Republicans and 80 Democrats. So assuming that all 70 Dem and 30 Republicans will vote "Yes" on a bill, it will pass the House due to simple majority. But because of the rule, the bill can't even be put forward for a vote since less than 50% of the Rep agree to it.

 

Otherwise, the shutdown would've been avoided or cut short because there are enough Democrats and Republicans to vote a simple majority to pass the budget bill.

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Throttle2

Throttle2

Supersonic

it's more like you scratch my back, i scratch yours in closed doors

then come up in front of camera ... both sides said they did everything they could for the love of American ... pui

 

 

I pwui pwui pwui, chey and double pwui!

 

Haha

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Wt_know

Wt_know

Supersonic

Republican control the lower house

Democrat control the upper house

 

it's a flaw .... day in day out fighting ... counter productive .... and this is AMERICA

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Enye

Enye

Hypersonic

 

 

they are playing 'who blink first' :huh:

our leader said they are playing a game of "chicken"

 

so support our leader, use the right term

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Wt_know

Wt_know

Supersonic
(edited)

sibei drama .... putting up for vote

 

what is there to vote? even tom dick and harry know it is going to PASS ... what game is that?

 

once obama sign the BILL ... more $$$ for the market ... cheong ah!

 

2e5o3ro.jpg

Edited by Wt_know
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Icedbs

Icedbs

Turbocharged

our kids generation will have to pay deeply for these grievious steps that US has taken.

 

History has taiught us that no party will go on forever. One day, the music will stop spinning, the booze will end, and someone will have to clean back the entire floor.

 

If anyone of you are parents now, better start thinking deep of an investment plan for your children and teach them to be financial savvy & prudent while they are still young. However,to be honest, even with all those plan in-place, I am not sure if that's going to be enough. It's just that it is better than not preparing them at all.

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Wt_know

Wt_know

Supersonic
(edited)

the innocent have to pick up the sh.it where the wall street culprits all run road with their million dollar private jet and living in their mansion around the world

 

our kids generation will have to pay deeply for these grievious steps that US has taken.

 

History has taiught us that no party will go on forever. One day, the music will stop spinning, the booze will end, and someone will have to clean back the entire floor.

 

If anyone of you are parents now, better start thinking deep of an investment plan for your children and teach them to be financial savvy & prudent while they are still young. However,to be honest, even with all those plan in-place, I am not sure if that's going to be enough. It's just that it is better than not preparing them at all.

Edited by Wt_know
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Mockngbrd

Mockngbrd

Supersonic

our kids generation will have to pay deeply for these grievious steps that US has taken.

 

History has taiught us that no party will go on forever. One day, the music will stop spinning, the booze will end, and someone will have to clean back the entire floor.

 

If anyone of you are parents now, better start thinking deep of an investment plan for your children and teach them to be financial savvy & prudent while they are still young. However,to be honest, even with all those plan in-place, I am not sure if that's going to be enough. It's just that it is better than not preparing them at all.

 

how to? live in SG so expensive now.

best to prepare them an exit plan.

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