Sovereign Default is now on the table

And so it begins...

"It's true that allowing America to default would be irresponsible. But it would be more irresponsible to raise the debt ceiling without simultaneously taking dramatic steps to reduce spending and reform the budget process."

Default is inevitable. If the US has any backbone left, it will do it in a way that can at least be somewhat controllable.

And, yes, it will suck, for everyone.

 

In the interests of national stability and general welfare, there is no reason to hasten the inevitable collapse, unless that's the point.

 

Remember in economics class when we used to learn how govt debt was such a great thing? I always remember trying to argue that to no avail.

 

It remains to be seen if this is real, or just more posturing from a Congress Critter.

 

What troubles me is Boehner isn't a lone voice. There's a chorus. And they're all high-ranking members of the US Government.

 

Yup.

I think Keynes intended to smooth out the business cycle. Problem is, he didn't foresee the political opportunism rampant with deficit spending and controlled interest rates. Each newly-elected hack runs up the credit card and nominates ambitious Central Bankers who agree to juice the economy (in return, for their reappointment). So the deficit never returns to a surplus and the debt always grows. This is why politicians are devout Keynesians - because it empowers them with the financial tools to buy votes. Which is why it's so hard to change the system. All the fuckers in DC "bribe" voters with their money, from the public purse.

 

You don't have a choice with SDRM. It happens because you can't make the maturity or interest payments. The only other option is to pump prime. Both are bad. In my opinion a SDRM if done properly is better.

 

And they also taught you there would never be another Great Depression right?

 

Is this just now sinking in? I would have thought you had seen this coming 3 years ago.

 

The "default" talk is BS an political posturing by the Left/Democraps.

The interest on the national debt is $200B. The federal gummint is taking in $2.5Trillion... a 12:1 cover.

The Dems want to extend the debt ceiling to foster even greater social spending and wealth redistribution... got nothing to do with "default on sovereign debt".

BOEHNER IS A LYING TURNCOAT AND A PUSSY!! He "talked" cut spending, fiscal responsibility... now he's folding like a cheap umbrella in a stiff wind.