Is the Truth Really That The US Financial System Is Insolvent ?

Discussion in 'Economics' started by libertad, Nov 3, 2008.

  1. http://www.washingtonpost.com/wp-dy...1/02/AR2008110202150.html?hpid=topnews&sub=AR

    ................................................................................................

    If this this is the case as depicted by AIG....

    Then when the world wakes up to reality....then does this become a non-event because of the direct linkage with other economies.....or does this mean that the US no longer gets to use its funny money ?

    In either case....this suggests further huge negative financial effects on the markets is not over....
     
  2. taodr

    taodr

    This is just another indication Bernanke doesn't know what he is doing. It seems the world would be better off if Greenspan,Bernanke, Paulson and the rest of the federal reserve members were behind bars !
     
  3. As long as foreigners continue to buy our debt our economy will chug along. Once China is done receiving our technology (look at what happened with GE in China) they will allow our phony economy to collapse. Thankfully, I believe this is a quite a few years away, but when it happens, it will happen overnight and it will be harsh.
     
  4. jjf

    jjf

    Just wait a few months and watch the beginning of a gradual transition, as the perks and benefits of misusing the world's reserve oil currency are steadily withdrawn..
     
  5. We have lived a premier life for many years because of that. Those years are becoming months and soon those months will become days.
     
  6. jjf

    jjf

    It is going to be interesting to follow the forum in December that George is hosting.

    When I say follow, I mean reading between the lines of the rubbish we will be fed, but I am convident that we can piece it together more or less
     
  7. 'The US is insolvent' - 'Financial Report of the United States Government' 12/15/06
    http://www.financialsense.com/fsu/editorials/martenson/2006/1217.html
    ' On 3/12/08 David M. Walker resigned as Comptroller General of the US
    Gene Dodaro GAO's COO is the Acting Comptroller General '
    http://www.gao.gov/cghome/dwbiog.html

    'PNC-NCB allegations'
    http://www.wkyc.com/news/local/news_article.aspx?storyid=99773&catid=3

    germany's 'Financial Markets Stabilization Fund' is Euro 500B which on a per
    capita basis is $2.5T - german pop 80m us 330m - which may not be the correct
    way of looking at it but emphasizes how large germany estimated the problem

    based on the numbers the us may be insolvent but is unlikely to
    declare bankruptcy, but i agree hard times are ahead
     
  8. Take a step back and realize that by definition any financial system under fractional reserve banking is insolvent
     
  9. clacy

    clacy

    We have the printing presses baby. We might get our asses handed to us from hyperinflation eventually, but we won't default!
     
  10. Ephany wrote....

    Take a step back and realize that by definition any financial system under fractional reserve banking is insolvent
    ...............................................................................................



    Very interesting....this would simply mean accessibility as defined by legal terms....

    This means that the decider of valuation is the transfer record as stated in legal terms as is associated with property rights.....

    So now the idea boils down to accessibility....or not having accessibility....or the degree of accessibility.....

    So now you have the asset in question, and the valuation in accordance with the legal agreements....

    So now one gets to compare the overall setting of legal agreements versus another....

    Ok....so the next question is.....which has value....a house whose sales price is nothing....or a stack of legal agreements whose value is nothing.....

    And just who gets to decide currency value comps...?
     
    #10     Nov 3, 2008