Is the U.S. Insolvent

[damngrumpy]

America has been insolvent for years. The US reserve bank, (there is a funny line) and the
banking committee have been running in ever smaller circles for almost three decades now.
I have believed we were headed to destruction for a long time and when the latest recession
that we are still in, came along people thought is was a sudden problem. It has been getting
worse since at least 2000 and has been growing continuously ever since. It has picked up
speed that was ignored until then. We will see a nose dive of mythic proportions next year
or in 2012. I believe Europe will sink and so will China and the rest of the world. Depression
is the key word here. America will default and start over.
I also believe the Banking system will be relieved of its duties and we will return to a system
where by we are prosperous and ranked by the wealth of our country and its natural resources.
It will be a long sober and sad road for many. The consumer era without limits is about to come
to a screaming halt.

 

[Albertabound]

America has been insolvent for years. The US reserve bank, (there is a funny line) and the
banking committee have been running in ever smaller circles for almost three decades now.
I have believed we were headed to destruction for a long time and when the latest recession
that we are still in, came along people thought is was a sudden problem. It has been getting
worse since at least 2000 and has been growing continuously ever since. It has picked up
speed that was ignored until then. We will see a nose dive of mythic proportions next year
or in 2012. I believe Europe will sink and so will China and the rest of the world. Depression
is the key word here. America will default and start over.
I also believe the Banking system will be relieved of its duties and we will return to a system
where by we are prosperous and ranked by the wealth of our country and its natural resources.
It will be a long sober and sad road for many. The consumer era without limits is about to come
to a screaming halt.

And I for one welcome it with open arms as it is the only way to correct the wrongs. Yes, it will be a long road but well worth it.
But never forget

" Bankers own the earth; take it away from them, but leave them with the power to create credit, and with the stroke of a pen they will create enough money to buy it back again."

Sir Josiah Charles Stamp: director, Bank of England;

 

[petros]

So what happens when nations take loans against the future work of a person using the Person as collateral and fail?

How the hell do you debit and credit that?

Do you keep taking loans to float your nation or do you let the creditors collect however they see fit?

A nations true strength and value is the labour of the people.

Are you willing to take a job in an "International Free Trade Zone" just to survive when the creditors come collecting?

 

[Albertabound]

Nations taking loans is a road to failure. The IMF has resulted in more nations failing then succeeding due to their pay back policies.

 

[petros]

Nations taking loans is a road to failure. The IMF has resulted in more nations failing then succeeding due to their pay back policies.

That's the whole point. Then the IMF forces privatisation upon everything and they are forced to sell their resources for debt that never ends.

 

[Albertabound]

That's the whole point. Then the IMF forces privatisation upon everything and they are forced to sell their resources for debt that never ends.

On Thanksgiving eve the English language China Daily and People’s Daily Online reported that Russia and China have concluded an agreement to abandon the use of the US dollar in their bilateral trade and to use their own currencies in its place. The Russians and Chinese said that they had taken this step in order to insulate their economies from the risks that have undermined their confidence in the US dollar as a world reserve currency.

This is big news, especially for the news dead Thanksgiving holiday period, but I did not see it reported on Bloomberg, CNN, New York Times or anywhere in the US print or TV media. The ostrich’s head remains in the sand.

Another instrument of American financial hegemony is the IMF. Whenever a country cannot make good on its debts and pay back the American banks, in steps the IMF with an austerity package that squeezes the country’s population with higher taxes and cuts in education, medical and income support programs until the bankers get their money back.

The Stench of US Economic Decay: Russia and China Dump the US Dollar

 

[Albertabound]

Now who wants to debate the title of the thread.....is the U.S. Insolvent. I started this post in Jan 2007....now what do you think. Where is Toro and the rest of the nay sayers now.

 

[Tonington]

Now who wants to debate the title of the thread.....is the U.S. Insolvent. I started this post in Jan 2007....now what do you think. Where is Toro and the rest of the nay sayers now.

They could be by August 2. But with a stroke of a pen, it won't be so. A debt limit is kind of dumb...as an example if the economy grows and the debt ceiling doesn't, then the borrowing capacity is actually reduced. So long as a nation can pay it's bills, that's all that should matter. Maybe if they want to keep a debt limit it should be tied to a percentage of GDP.

Suppose a university student earning minimum wage is given a credit card with a $1000 limit. After graduating, they are making $40,000 a year. Should the borrowing capacity not reflect the ability to pay? What if they get a promotion after a few years. They're up to $55,000 now. Should they be able to borrow more?

 

[TenPenny]

They could be by August 2. But with a stroke of a pen, it won't be so. A debt limit is kind of dumb...as an example if the economy grows and the debt ceiling doesn't, then the borrowing capacity is actually reduced. So long as a nation can pay it's bills, that's all that should matter. Maybe if they want to keep a debt limit it should be tied to a percentage of GDP.

Suppose a university student earning minimum wage is given a credit card with a $1000 limit. After graduating, they are making $40,000 a year. Should the borrowing capacity not reflect the ability to pay? What if they get a promotion after a few years. They're up to $55,000 now. Should they be able to borrow more?

Not if they're maxed out, and spending more than they earn all the time.

 

[Ocean Breeze]

House nears vote on GOP debt bill; Dems oppose - Yahoo! News

House nears vote on GOP debt bill; Dems oppose - Yahoo! News


Insolvent?? IF it isn't , it is in grave denial. The political games go on ......while everyone sits on pins and needles wondering if they are going to pull the proverbial rabbit out of the hat........at that "final" moment........creating all the drama they can.


Would you buy a used car from the US .......as things stand now and continue to disintegrate.?? It has been suspected and theorized for a long time that no one as to militarily invade the US to destroy it. The US gross mismanagement of its budget , finances and over extending it self will do the job for them.

Even OBL was right.......when he said the budget / financial state would be the self destructive factor.

Meanwhile politics over ride good sense and cooperation. ( but not sure the USG knows or comprehends the words cooperation or compromse..........)

 

[petros]

How do you pay a bill by passing a bill? Are they hoping if they eat $5 bills that they'll s h i t out $100s? It's been done before it's called hyper-inflation. Then thing collapse after you get all bunged up on something you can't eat because it's lacks nutritional and economic content.

 

[Ocean Breeze]

Are they hoping if they eat $5 bills that they'll s h i t out $100s?


Yep. and then they will argue about which 100$ is more genuine.


These bozos should be thrown into a sandbox and made to stay there (mosquitos and all) until they actually GROW UP.

 

[Albertabound]

It's pretty simple. When one has to continually increase their line of "credit" in order to pay bills, all you are doing is creating more bills. You don't have the money in the first place to pay the original bills but now you are adding an interest bill to your already existing bills that you "can't" pay. and at 3 trillion dollars and $100,000 in interest ticking away per second it is clear to see that you or I would never get out of the mess you created .....and either can the U.S. The simple truth is they spend more than they make. Name me one bank that you look at your financial records and give you that loan. Not one, and if the U.S. was that person they too would be denied. They are finished .....at least the American dollar is. Look for changes coming soon.

 

[JLM]

Time for Obama to get resourceful, hold a hot dog sale on the White House lawn and he could also charge $5 for anyone who wants to shake his hand and $10 for anyone who wants to kiss the First Lady. :lol:

 

[JLM]

It's pretty simple. When one has to continually increase their line of "credit" in order to pay bills, all you are doing is creating more bills. You don't have the money in the first place to pay the original bills but now you are adding an interest bill to your already existing bills that you "can't" pay. and at 3 trillion dollars and $100,000 in interest ticking away per second it is clear to see that you or I would never get out of the mess you created .....and either can the U.S. The simple truth is they spend more than they make. Name me one bank that you look at your financial records and give you that loan. Not one, and if the U.S. was that person they too would be denied. They are finished .....at least the American dollar is. Look for changes coming soon.

Strange isn't it that the banking and Wall Street minions can't understand this very simple concept that most of us had figured out by the age of 8.

 

[Kreskin]

It isn't insolvent. It can pay it's debts and it can choose to spend less and/or collect more revenue.

 

[Ocean Breeze]

It isn't insolvent. It can pay it's debts and it can choose to spend less and/or collect more revenue.

are you sure about that?? The national debt is not coming down......but getting bigger. Yes....It could spend a LOT less on its war activity and that would help a lot. (but not likely) It can do a lot of things if it made up its mind to do so.....but the system is so fractured now.....they can't come up with a sensible solution as they run out of time. They might pull a rabbit trick ....at the eleventh hr......and then everyone will breathe a sigh of relief and act like nothing has happened. THe question is : will anything change?? will they learn anything?? A rabbit trick is NOT true crisis intervention for as big a problem as they have. The sad thing is that too many still believe in magic and refuse to face reality.

Their priorities need to undergo a major shift. Why is WAR such a priority when the livelihoods of the US population, ( programs for the aging, programs for better education, and better health programs ) are the first to be axed. Very shameful indeed for what WAS a rather progressive nation.

 

[JLM]

It isn't insolvent. It can pay it's debts and it can choose to spend less and/or collect more revenue.

That is true, but I'm not sure the President is convinced the voters will put up with it. :lol:

 

[Ocean Breeze]

Perhaps the solution should be put to the voters and see what they would do.....

 

[JLM]

Perhaps the solution should be put to the voters and see what they would do.....

The thought of a referendum did cross my mind, but right away I came to the conclusion that the voters are not going to be for anything that is going to "hurt".