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Amerika looks bankruptcy in the eye, then buys another four tacos.

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the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week's auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit - break out the Champagne! Granted there is a buffer of $52.2 billion between the total debt and the debt actually subject to the ceiling, meaning that America is not in default, yet. Therefore, the total debt subject to the limit assuming full settlement right now is $14,258,341,662,931. Which means the US is now $35.7 billion away from a bona fide breach of the debt ceiling. Yes, there are some caveats, and it is possible that there will be an accelerated redemption of bills over the next few days, pushing the total debt slightly lower, but readers get the idea.

http://www.businessinsider.com/treasury-sells-29-billion-in-bonds-bringing-total-settled-us-debt-to-14311-trillion-more-than-the-debt-ceiling-2011-3


Does this mean us Americans will be taking it up the ass from China for a while?

Or we just tell them that it was only like, monopoly money, or something.

It'll probably take shape as a trade and tariff war with the populations of each side, like any war, bearing the brunt. Generals gathered in their masses and all.

Or we just tell them that it was only like, monopoly money, or something.
incredibly, this is an option that genuinely appears to be being considered by some US financiers at the moment. It would be an amazingly dangerous move though.
 

Which US financiers?


I assume by "amazingly dangerous" you mean war? What a spectacle that would be! So much has changed since the last time the world saw total war. Not even considering WMDs...



Rot

I'm all for it, I got a place deep in the woods only a stray warhead would find by total accident. I'm doing ok I guess but I'd rather see shit crumble and explode in my lifetime than slowly crawl towards death in a comfy bed.

Which US financiers?


I assume by "amazingly dangerous" you mean war? What a spectacle that would be! So much has changed since the last time the world saw total war. Not even considering WMDs...
Not war: default.
Had to wait for the story to break amongst the proles... ;) But here is the background reading on a strategy that is in fact getting MUCH more professional attention within the financial sector than media outlets dare to report.

http://www.businessinsider.com/bank-of-americas-jeffrey-rosenberg-says-the-us-should-default-2011-4
http://www.businessinsider.com/chris-whalen-urges-the-us-to-default-2011-4
http://www.businessinsider.com/dean-baker-default-2011-4

Back when the progressive modernists looked ahead with rosy tinted spectacles epoxied to their greasy beaks, they would scoff at those right wing survivalist types grabbing what gold they could at $790 an ounce:

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Gold prices topped a record $1,500 for the first time ever on Tuesday, shattering an important psychological barrier as investors seek out investments thought to be safe during times of upheaval.

Many investors see gold as the best place to park their money when there's economic or policital uncertainty, and there has been plenty of that to go around.

http://money.cnn.com/2011/04/19/markets/gold_1500_record/

Prediction: due to scarcity of power and intact staffed machine shops, expended ammo brass is eventually going to be used as currency

Back when the progressive modernists looked ahead with rosy tinted spectacles epoxied to their greasy beaks, they would scoff at those right wing survivalist types grabbing what gold they could at $790 an ounce:
Ah, but people only ever talk down the value of something when they're attempting to buy it for themselves...!  

Cross-reference the price of gold to the US dollar index and you see a tidy proportional inversion of the values. A return to the gold standard is probable when USD is dumped as the global reserve currency. Might as well convert your currency now rather than later when everyone is doing it....

* * * * *

Keep in mind though that gold is and always has been the measure of sovereign wealth not common wealth. In times of hardship, your "king" is liable to confiscate your gold for his own ends. Sounds unlikely? Body scanners at airports sounded unlikely to us 10 years ago too. And it has been done before, by America's favourite evar president, FDR: http://en.wikipedia.org/wiki/Executive_Order_6102

A safer bet is silver. It has a smaller value by weight, making it more suitable for buying your shotgun cartridges and bags of rice. It is not likely to be confiscated in times of "unprecedented turmoil", and it is still under-valued if you buy it today.

Back when the progressive modernists looked ahead with rosy tinted spectacles epoxied to their greasy beaks, they would scoff at those right wing survivalist types grabbing what gold they could at $790 an ounce:

Another way of looking at this: the value of the currency has shifted, not the value of gold. $1500 is the new $790.

Entitlements and welfare for liberal equality ideology are driving America into insolvency. Wars and fair tax for those with an above average income do not account for the majority of deficit spending. http://www.nationalreview.com/articles/264917/not-tax-cuts-not-wars-and-not-bailouts-kevin-d-williamson

This fantasy ideology, not the wars, not taking care of successful people, is causing the currency to plummet in value.

I'm just going to give this thread a little bump, seeing as the story is now all over everywhere, and the climax should be around tuesday next week.

And don't forget - you heard about all of this here first.

Bring on GFC MK II.

If the share market completely tanks and you've stored enough cash there's no reason why you cannot significantly bring froward your retirement if you pick the right approach.

I must be stupid, because I cannot see any specific future regarding America's financials. So, what do we do from here? Even if we murdered the under-120's tomorrow and killed the deadbeat leaders, America would have to tell some people (even China) to piss off. Since the U.S. is a free marketeer's wet dream, can it simply drudge on like nothing happened (investing continues and whatnot)? That is what it will have to aim for, and I do not foresee anyone stopping this. Therefore, I do think that if there is a collapse, it will be subtle.