Financial day of reckoning drawing nearer?

[the1]

Agreed, the American Empire isn't quite the same a Rome's or GB's but the sheer size of the US economy and the fact that it has military bases in what, 128 different countries? Qualifies it as an Empire. The day of reckoning is drawing nearer for sure but I don't see it happening in the immediate future. There will be more recessions and crisis' but will the country fall or declare BK in the next couple years? I doubt it.

Quote from endsongs:

Japanese are definitely healthier, but have you checked their economic ills lately?

America is a single country, not an empire like Rome or Britain were. There is no periphery of countries 1000's of miles away to slowly slip away while the capital territory is somewhat isolated. Look at how quickly the USSR fell, too. Also, I'm talking more about financial and not national reckoning. Plenty of nations with deep financial issues weathered the storm. See Germany post weimar as an example. The financial reckoning is that the elected gov't MUST cut spending and raise taxes drastically, and possibly sacrifice re-election, to save this country's future. This has to be done soon, within a year or two, before the next financial crisis or recession hits.

 

[Ivanovich]

Quote from AMT4SWA:

The PROVEN dysfunctional "Left - Right two party paradigm" has evolved into a cesspool of directed unconstitutional destruction. The entangled corruption and manipulated activities of the two FAILED parties are specifically designed to keep sucking you back in for more. Just like a sickened abused wife, most American people keep going back into the arms of the two party system hoping to one day find real love.......only to get more abuse and more permanent wounds.

The ONLY way out is to break free to independence or to continue accepting the abuse as your norm until dead......YOUR choice!

Could not agree more. You know, one thing I liked about the Russian political system (which of course, was never given the chance to work because of corruption) is that on each ballot, below the names of the candidates was an option called "None of the Above". If this option gets the majority, then ALL candidates are thrown out and new ones have to be brought forward.

I kinda like that option.

 

[zdreg]

Quote from the1:

Agreed, the American Empire isn't quite the same a Rome's or GB's but the sheer size of the US economy and the fact that it has military bases in what, 128 different countries? Qualifies it as an Empire. The day of reckoning is drawing nearer for sure but I don't see it happening in the immediate future. There will be more recessions and crisis' but will the country fall or declare BK in the next couple years? I doubt it.

the country doesn't have to declare bankruptcy to be bankrupt. do countries ever declare bankruptcy.

how does a country declare bankruptcy?

 

[Scataphagos]

Quote from zdreg:

the country doesn't have to declare bankruptcy to be bankrupt. do countries ever declare bankruptcy.

how does a country declare bankruptcy?

They don't, generally... at least not officially.

But they become de facto bankrupt when they print so much money that they "repay" creditors with worthless (or worth less) currency... $Charmin, in our case.

 

[zdreg]

Quote from Scataphagos:

They don't, generally... at least not officially.

But they become de facto bankrupt when they print so much money that they "repay" creditors with $Charmin.

when that day comes there will be a shortage of Charmin and person care items ie soap etc.

 

[Ivanovich]

I think when they default - ie, not make debt payments, or interest payments, etc., that is a defacto declaration.

 

[Scataphagos]

A country can't really afford to declare bankruptcy and officially default on creditors.

Sure, that would "discharge" current obligations and then be able to "start over", but what about future borrowings? Lenders and bond buyers would want astronomical interest rates to compensate them for the perceived risk they'd be taking. After all, who would be eager to lend to someone or country who had recently dumped on those who'd lent them money before??

 

[zdreg]

Quote from Scataphagos:

A country can't really afford to declare bankruptcy and officially default on creditors.

Sure, that would "discharge" current obligations, but what about future borrowings? Lenders and bond buyers would want astronomical interest rates to compensate them for the perceived risk they'd be taking.

that is exactly what happens all the time in one or another 3rd world country.

care to make a prediction when states within the US default ala the provinces in Argentina?

it will happen with a domino effect.

 

[Scataphagos]

Quote from zdreg:

care to make a prediction when states within the US ala the provinces in Argentina default?

it will happen with a domino effect.

Hard to say. Many of our states are running big deficits and clamor to the Feds to give them money to meet their obligations.

The Feds will continue to do so, as they don't want the first state to fail and start the dominoes tumbling.

How long can the credit and print-money charade carry on? Maybe longer than we think, but with an accompanying inflation, debasing of our currency and decline in our standard of living.

 

[zdreg]

Quote from Scataphagos:

Hard to say. Many of our states are running big deficits and clamor to the Feds to give them money to meet their obligations.

The Fed will continue to do so, as they don't want the first state to fail and start the dominoes tumbling.

How long can the credit and print-money charade carry on? Maybe longer than we think.

the charade is similar to the old saying about markets:
"markets can stay irrational alot longer than you can stay solvent"