Why not just default on all of our national debt to foreign countries? They dont call it "credit risk" for no reason, you know!
Some greedy congressman would screw it up, they would just buy anyone off, after all they can make money out of thin air.
you already know why this will never happen.... would you kill the biggest cash cow in the world if you were profiting from it? TNG
America manufactures twice the dollar value of the second most country, China. Do your homework. Cars? Jets? Software? Hollywood movies? Agricultural goods? etc etc.?
If it werent for govt bailouts the first two would barely exist. Hollywood movies - come on, thats the best America has to offer? Have you looked at your trade deficit lately?
as reserve requirements are raised, credit contracts and all the homeowners ,credit card users and companies will be requested to pay back their loans(to raise reserves for the bank), they would be squeezed and they cant possibly pay, this would pretty much set the US in a new great depression. once credit is expanded to this levels you cant just go back, unless its a very slow process
Remember how we USED to make things ike radios, TV's, washers, dryers, refrigerators, toasters, waffle irons, pots and pans, furniture, clothes, etc? Well pretty soon I think we will add Autos to the list of things we USED to make. Already most of the parts at Autozone are made in China. It won't be too long before competition forces the automakers to either import all the cars and trucks or go out of business. As volumes drop, cost per unit rises and the effects of fixed costs like healthcare and retiree pensions hurt that much more. I expect the exodus to continue until we make almost nothing, and then, when the rest of the world gets tired of accumulating our paper IOU's, the dollar will crash, and we just won't be ABLE to AFFORD to buy the imports, and lacking any domestic production ability, we will be forced to do without.