http://www.washingtonpost.com/wp-dyn/content/article/2009/12/11/AR2009121101186.html What would happen in the short term? would stores stop taking dollars immediately? How would it affect the chinese economy? I would assume stocks would still be valuable but it would take time for them to be repriced in a different currency? Would our military just halt?
Maybe one day the govt. will finally DOWNSIZE.... And properly restructure itself.... The current structure does not.... And will not work.... Unfortunately.... The individuals in govt..... are the "wrong ones".... Perhaps this is what it takes....
He said immediately, though. Do you really think they'd jump right to that? I think that'd be step two.
Government programs such as SS and Medicare would slowly (or maybe quickly) grind to a halt. Taxes would go through the roof. There is only way to get out of a credit default -- massive taxation. Interest rates for government debt would sky rocket so sweeping tax collection would be the only way.
I have thought this also. After all, the only intrinsic value that USA really has is the country (i.e. land) itself. --- China has 37% of its GDP in cash reserves --- USA has 0.035% (that's 1/3 of one percent) of its GDP in cash reserves. (plus the FDIC, Treasury and Fed are all broke) At some point, China is going to decide that they need to come and get "the collateral" from all of those debt bonds - especially when our long bond market collapses, which is inevitable due to the current Democrat Congress and Pres bankrupting our country.
What if the US defaults on its debt? Did you mean what or when? A default is virtually certain unless some some sort of debt restructuring occurs or unless their is adoption of a new world order with a new world currency. China will never invade the US. We have one of the highest per capita gun ownership levels in the world. You also don't invade countries that have nuclear weapons. Regrettably, Japan found out how that works. When we default, our personal problems will be more internal than external. Look to Argentina's example with bank closures, unemployment, food shortages, looting, etc. I hope we never experience such anarchy, but if we do, the best protection will be guns, ammo, stored food and water, gold and silver bullion, as well as any other equipment or supplies that increase your level of self-sufficiency. I know it may sound crazy to a lot of people, but now is the time to buy guns and especially ammo while you can and silver while it is cheap. If you never need it--great. But if the shtf, you may be glad you did.
By definition, default is impossible. The government owns the dollar printing press. Hyper-inflation, on the other hand, is possible.
Can not be done. I do think it would spark WWIII though. Neither country could invade the other so it would go nuclear eventually. Short term = hyperinflation for US
The US won't default its debt. But other countries (some emerging, some W.Europe, and even England; may well default.