Federal debt limit raised to $9,000,000,000,000

[cpmarch]

Good point, NOT Walter E Williams... Walter "John" Williams.

[cathleeninnh]

It could be Joe Schmoe. I am still frightened because I don't see any other options besides default or inflation. Another reason to prepare for disaster. Get ready to hunker down and hopefully ride it out.

Cathleen

[DC]

I found this interesting. It is talking about the future years using Gilligan's Island as an example.    http://www.financialsense.com/fsu/editorials/2006/0320.html

[tracysaboe]

It could be Joe Schmoe. I am still frightened because I don't see any other options besides default or inflation. Another reason to prepare for disaster. Get ready to hunker down and hopefully ride it out.

Cathleen

Default is highly preferable.

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy

[Dreepa]

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy.. you will need to review the economy of this country.
Many banks hold Tbills.  They might fold.  Insurance companies (don't you work for one?) hold TBills they might fold.
The whole economy will collapse not just 'those people'.

[AlanM]

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy.. you will need to review the economy of this country.
Many banks hold Tbills.  They might fold.  Insurance companies (don't you work for one?) hold TBills they might fold.
The whole economy will collapse not just 'those people'.

Dreepa, eventually the collapse will come. $9 trillion and counting. What is the upper limit before the whole house of cards collapses? Who knows. But there is a limit somewhere. We need to be ready for the collapse.

[DC]

I think people should avoid adjustable rate mortgages or switch to a fixed rate mortgage if you allready have one. They will be very painful in a high inflation enviroment. Credit card interest could also rise dramaticaly.

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy.. you will need to review the economy of this country.
Many banks hold Tbills.  They might fold.  Insurance companies (don't you work for one?) hold TBills they might fold.
The whole economy will collapse not just 'those people'.

Pension funds and 401k's are in Tbills. Finansial advisors tell their clients to diversify into Tbills. They say the older you get the more you should have in Tbills because they are SAFE.

[Pat McCotter]

The real losers will be those paying an Adjustable Rate Mortgage and a Low Entry Guarantee.

[tracysaboe]

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy.. you will need to review the economy of this country.
Many banks hold Tbills.  They might fold.  Insurance companies (don't you work for one?) hold TBills they might fold.
The whole economy will collapse not just 'those people'.

There's going to be a callapse one way or the other. At least default, is targeted a little more and the people volentarily perpetuating the system instead of hurting everybody like hyperinflation would.

Actually my last day at e-surence was Friday. I'm working full-time at the call-center now. (The part-time job I had while I was at E-surence.)

At least a person can protect them selves a little form default. Don't try to store your wealth in Government debt instruments.

Inflation on the other hand, it's a lot more difficult. Besides getting your debts paid off and buying gold to trade for dollars to buy food, which is a bit complicated, it's very difficult to protect your business and your self from the effects of inflation.

But all you need to do to protect yourself and your business from defaulting is simply -- don't purchase government debt. Now, obviously the people that do that get hurt will ripple out to others who didn't purchase government debt --  but it's a bit more targetted.

Tracy

[tracysaboe]

I think people should avoid adjustable rate mortgages or switch to a fixed rate mortgage if you allready have one. They will be very painful in a high inflation enviroment. Credit card interest could also rise dramaticaly.

The only people that get screwed then are the parasites who desided to loan money to the feds knowing full well the only way to get repaid was for the government to steal for them.

Tracy.. you will need to review the economy of this country.
Many banks hold Tbills.  They might fold.  Insurance companies (don't you work for one?) hold TBills they might fold.
The whole economy will collapse not just 'those people'.

Pension funds and 401k's are in Tbills. Finansial advisors tell their clients to diversify into Tbills. They say the older you get the more you should have in Tbills because they are SAFE.

My 401K is all in agressive stock funds. So is my IRA.

Buy gold if you want to play it "safe." It's more reliable then t-bills because it's an asset instead of a defaultable debt.

Tracy

[Dreepa]

People have been predicting default since the Reagan years (when I started paying attention to this stuff).
Tracy if collapse happens... everyone will be affected in this country not just those invested in TBills.

I can last 3-4 months right now if I had to do without going to the store... I am prepared I just don't think it is going to happen real soon.

[AlanM]

A scenario for US default on debt.

China has been buying US debt. China wants Taiwan back under its control. China tells the US, stay out of our dispute or we dump your notes on the open market. US doesn't listen. China dumps notes on the market. US can't sell any as the market cannot absorb any more. US is forced to default.

[Tunga]

Alan the biggest problem with that is, if the Chinese screw us, who is going to buy all thier shit?

[AlanM]

Alan the biggest problem with that is, if the Chinese screw us, who is going to buy all thier shit?

The rest of the world.
China is intent on regaining control of Taiwan, regardless of the cost. This scenario will cost them less than an all out war with the US.

[Tunga]

Your not making me feel better Alan.

Do you believe that the reason there is no 7.62 x 39 available is cause it's all going to Iraq?

Just curious.