Debt can it be paid off at these levels? Who will lose out? http://morganisteconomics.blogspot.com/2011/07/where-next-with-financial-crisis.html
The one that cracked me up, they interviewed Ron Paul and asked him if he thought we were going to default and he said,"We already defaulted years ago. Now it's just a matter of going through the details."
He has a point. Every COLA adjustment that slows the rate of SS increases is by definition a partial default.
I'm kind of a night owl so I watch the CNBC European squawk box. They are going ballistic over this US debt crisis. They and many Americans can't imagine an econonomy without a government.
Next step maybe not but it will happen in the future. I would argue it has already begun but it just needs a big pension fund to go down for people to notice. That will happen in the coming year or two.
So many people are dependent on it that is why. Even rich people are rich because of jobs they have been given by the government. Most private businesses get public contracts now so the whole economy is milking it.
Your exactly right, Joe Sixpack on the street doesn't know or care about the nations debt, how we got here, what "money" actually is, how it is created, what it is backed by, why we are screwed ect. Joe Sixpack will only care when his unemployment checks stop, SS checks stop, or Pension checks stop. Instead of Joe Sixpack already seeing this coming YEARS ago if he was educated and prepared, Joe Sixpack will riot or loot when austerity finally comes.
In some cases you may be right. Like defense contractors. But explain to me what P&G and a host of other big names on the S&P would do if the government goes chapter 7? Do you think they would close their doors and just say, "Sorry, we can't exist without a federal government."?