The US is bankrupt

Quote from Runningbear:

While China is the largest holder on US debt, a significant proportion of US government debt is held by US citizens in the form of US treasuries through retirement funds and the like. So a lot of US citizens would be hurt if the US defaulted. And of course the world economy would collapse overnight. Which is no good for anyone.
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good point, but now for the first time, there's a new twist ....

US investors now own majority of Treasuries – for the first time since the start of the financial crisis in Aug ’07, US investors own more Treasuries than foreign holders – Bloomberg



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alright people. start forming an army, built a fortress in your neighborhood, and stack canned of tuna and canned of spam.
 
Quote from bearice:
World derivatives are worth $600 Trillion. The whole world is bankrupt.
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Stop the nonsense, please...

World derivatives are not "worth $600tn". Their notional value is $600tn. If you don't know the difference between NPV and notional, you're not fit to comment.
 
Quote from emg:

alright people. start forming an army, built a fortress in your neighborhood, and stack canned of tuna and canned of spam.
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Why? What should I do if the army kicks me out of the fortress and take all the spam and tuna away from me. :eek:
 
Quote from deadbroke:

good point, but now for the first time, there's a new twist ....

US investors now own majority of Treasuries – for the first time since the start of the financial crisis in Aug ’07, US investors own more Treasuries than foreign holders – Bloomberg



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Do you mean US investors or the Fed and it's go betweens?
 
As someone mentioned earlier, once the fractional reserve genie was let out the bottle this was only going to head one way. The banking system is screwed. Everyone knows it. But fixing it involves tearing the current financial system to pieces. And nobody is in a rush to do that. The show will come to an end soon enough of its own accord, but until then...let's party like it's 1999.
 
"House Speaker John Boehner routinely offers this diagnosis of the U.S.’s fiscal condition: “We’re broke; Broke going on bankrupt,” he said in a Feb. 28 speech in Nashville.

Boehner’s assessment dominates a debate over the federal budget that could lead to a government shutdown. It is a widely shared view with just one flaw: It’s wrong. "

continued: http://www.bloomberg.com/news/2011-...r-saying-we-re-broke-is-figure-of-speech.html
 
Quote from Martinghoul:

Stop the nonsense, please...

World derivatives are not "worth $600tn". Their notional value is $600tn. If you don't know the difference between NPV and notional, you're not fit to comment.
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+1

Also, will someone please explain to me how the zero-sum portion of the market is capable of bringing about a complete collapse in the underlying?

By definition, we are talking about contracts only. There is no creation of wealth in this arena, merely a transfer. Thus a derivative-based global collapse seems illogical.
 
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