[King Balomesh]

Things are looking pretty bad for the US. Forces are stretched, enemies are multiplying, economy is going down the drain, and I thinks its obviouse by now that Russia and China wouldnt break their backs trying to help the US out . So what I hear is that this "Housing Crisis" in the US isn't supposed to clear up in at least 5 years. And the next thing will be the credit card crisis. This next part is extra and I'm not positive about it but, supposedly U.S. money will only be good for the next 2 years? Whats that supposed to mean?!?!

[Mogar]

I dont think the rest of the world has much option in whether or not it gets better for America, if it dont, they're all going to be devastated as well.

This post has been edited by Mogar: 13 April 2008 - 01:38 PM

[King Balomesh]

Mogar, on Apr 13 2008, 10:51 PM, said:

I dont think the rest of the world has much option in whether or not it gets better for America, if it dont, they're all going to be devastated as well.

I think a collapse of the US economy could send the world spinning out of control for some time. Not to mention an almost certain invasion from almost countless enemies. I think its safe to assume a Superpower hated by all may live shorter than a weak nation, quiet on the world stage, hm? It would be depressing in a way though if such a thing happend.

[Gustave5436]

King Balomesh, on Apr 13 2008, 01:03 PM, said:

I think a collapse of the US economy could send the world spinning out of control for some time. Not to mention an almost certain invasion from almost countless enemies. I think its safe to assume a Superpower hated by all may live shorter than a weak nation, quiet on the world stage, hm? It would be depressing in a way though if such a thing happend.

Who is going to invade a country with the world's most powerful navy (by far) and a substantial nuclear stockpile?

[Joules]

I have most certainly been solidifying my Apocalypse Contingency Plan.

[Darknight6]

We have had hard times before and we have made it through we will do it again this time. Our economy has multiple fail-safe that we can go through before it collapses. Most of the problems can be solved by a new, competent President and administration. Our problems are blown out of proportion.

[king normanIII]

Again I say: To all those who think the US will spiral into a depression or the world economy will collapse. Find me an economist who agrees with you. By that I mean someone with a PhD in economics or even just a reputable news source (Financial Times, WSJ ect ect) I also want you to look up the phrase "decoupling".

Edit - misspelling

This post has been edited by king norman: 13 April 2008 - 02:41 PM

[GTTofAK]

Hah the moment our GDP slows in the slightest the hateful vultures start circling. Sorry guys worst of the credit crunch is already over. Better luck next time.

[Kenadian_2006]

GTTofAK, on Apr 13 2008, 05:28 PM, said:

Hah the moment our GDP slows in the slightest the hateful vultures start circling. Sorry guys worst of the credit crunch is already over. Better luck next time.

I don't think the worst is over by any means. I remember, maybe about a week back, I saw a news segment that said a report was released (it was either the IMF or World Bank or some other organization along those lines) and in that report, one of the things it mentioned was that the worst of the current economic crisis has yet to come. It also mentioned that the projected loss of money is to be around 1 trillion dollars, among other things.

[Darknight6]

yeah, but these guys were talking about the complete collapse of our economy which is no where near happening.

[jeff744]

King Balomesh, on Apr 13 2008, 01:41 PM, said:

Things are looking pretty bad for the US. Forces are stretched, enemies are multiplying, economy is going down the drain, and I thinks its obviouse by now that Russia and China wouldnt break their backs trying to help the US out . So what I hear is that this "Housing Crisis" in the US isn't supposed to clear up in at least 5 years. And the next thing will be the credit card crisis. This next part is extra and I'm not positive about it but, supposedly U.S. money will only be good for the next 2 years? Whats that supposed to mean?!?!

China owns about 1 trillion of the American debt, I think they will want that back eventually.

[GTTofAK]

jeff744, on Apr 13 2008, 06:42 PM, said:

China owns about 1 trillion of the American debt, I think they will want that back eventually.

I beleive they will get it back when the bonds mature. Just like every other bond holder.

So few people really know what they are talking about when in discussion international finance. They project their own lives on matters that are nothing like nor similar to their own lives or finances. Here is hint our government's debt isn't like the debt owed to a bookie. No one is going to come break your legs. As the bonds that China is holding mature they will be payed off. The notion that we cant pay off our current bonds given our current debt/revenue ratio is is beyond asinine. We have held a much higher percentage of debt many many times in the past and never ever defaulted.

This post has been edited by GTTofAK: 14 April 2008 - 12:31 AM

[Dennis Von Bremen]

jeff744, on Apr 13 2008, 09:42 PM, said:

China owns about 1 trillion of the American debt, I think they will want that back eventually.

They take a little bit back every now and then with monthly payments, I mean they wouldn't just suddenly try to force the US to give them back all the money in one payment.

[Xiao Weng]

GTTofAK, on Apr 14 2008, 01:43 AM, said:

I beleive they will get it back when the bonds mature. Just like every other bond holder.

So few people really know what they are talking about when in discussion international finance. They project their own lives on matters that are nothing like nor similar to their own lives or finances. Here is hint our government's debt isn't like the debt owed to a bookie. No one is going to come break your legs. As the bonds that China is holding mature they will be payed off. The notion that we cant pay off our current bonds given our current debt/revenue ratio is is beyond asinine. We have held a much higher percentage of debt many many times in the past and never ever defaulted.

Because we print more money to cover those debts, but don't actually take cash out of circulation when certain debts are paid off.

[Vicea]

I believed that the US debt has increased with 50% under the bush administration, an enormous amount that will take new generations decades to pay off.

Wouldn't printing more cash just lead to increased devaluation of an already unstable and increasingly weaker dollar? And thus in turn to inflation?

[Xiao Weng]

Vicea, on Apr 14 2008, 08:32 AM, said:

I believed that the US debt has increased with 50% under the bush administration, an enormous amount that will take new generations decades to pay off.

Wouldn't printing more cash just lead to increased devaluation of an already unstable and increasingly weaker dollar? And thus in turn to inflation?

Yes. To strengthen the dollar, you have to strengthen people's view of the dollar. That's both the chief strength and weakness of a fiat currency. When the nation's economy recovers from the latest 'bubble', then the dollar will once again gain strength.

The U.S. government should never have been treating debt as a tradeable commodity, but I suppose you can't expect a government to function within its means.

[Jamacus]

Things will get slightly worse due to pressure from foreign countries' economies. However, eventually the developing countries like India and China will catch up with America and life will continue on albeit, slightly worse for America and significantly better for everyone else.

[GTTofAK]

God damn am I the only one who knows how things work? The government doesnt finance its deficit by printing more money. It issues bonds at what is currently a very low interest rate. There is only about $820 billion of curerency in circulation. Jeesh the internet has really really caused all these ridiculous ideas to circulate.

This post has been edited by GTTofAK: 14 April 2008 - 09:42 AM

[GTTofAK]

Deniz Baykal, on Apr 13 2008, 10:54 PM, said:

They take a little bit back every now and then with monthly payments, I mean they wouldn't just suddenly try to force the US to give them back all the money in one payment.

Monthly payments? Does anyone here know what they are talking about? They cant simply demand all the money in one payment, no more than I can go to the fed and demand my 10 year note be paid off in 5.

THEY ARE HODLING BONDS!!!!! THOSE BONDS WILL BE PAID OFF WHEN THEY MATURE AND NOT A SECOND SOONER!!!!!!

[Xiao Weng]

GTTofAK, on Apr 14 2008, 10:54 AM, said:

God damn am I the only one who knows how things work? The government doesnt finance its deficit by printing more money. It issues bonds at what is currently a very low interest rate. There is only about $820 billion of curerency in circulation. Jeesh the internet has really really caused all these ridiculous ideas to circulate.

Do me a favor.

Open up a window, go to Google, and type in 'monetizing the debt'. After that, maybe you'll stop being so condescending when you think you know so much more than you actually do.