US Default Inevitable? – 07/14/11

Dear Ladies and Gentlemen,

For Your Concern (FYC) or For Your Entertainment (FYE) whether you are a part of Western Civilization…….or NOT!……….;+)

http://www.cnbc.com/id/43721270

“A U.S. default isn’t a matter of “if” but “when,” ………..

“”It’s inevitable that the U.S. will default—it’s essentially an empire which is overextended and in decline—and that its financial system will go with it,”

“The question is: Does the U.S. default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage,”

“”It’s very simple, its (America’s) empire system, its financial system is in decline, we’ve seen very little growth for over a decade apart from financial engineering and leveraging, which ultimately caused the debt crisis of 2008,” ”

“America is the last of the Christian, Western empires. “Who do you pass your values to as China grows and challenges? No one. So you are forced to continue to spend and one day you cannot afford it,” ”

“”If you look at how China is seeking to control debt in Europe and marginal debt in the U.S., which is strategic ownership, the position becomes more precarious for America,” ”

“”The U.S.’s options are pretty dire and this is a real disaster but you can mitigate it.”
“The real disaster, would be to avoid recognizing the collapse of America’s powerbase. “That only accelerates the loss of power and that creates a bigger vacuum, which China moves into and leads to potential conflict,” ”

 

http://www.cnbc.com/id/43721259

http://www.cnbc.com/id/43689149/

http://www.cnbc.com/id/43709383/

 

“America’s debts and interest payments will eventually swamp the country and trigger a sovereign default.”

 

“However, the US would have forfeited its top credit rating and a devastating bond crash would have occurred long before this happens,”

 

“The US needs to save $240 billion each year. Since Congress works on the basis of a 10-year plan, it would need to agree a package of spending cuts and revenue increases that would net a total of $2.4 trillion, ”

 

““But at the same time, the debt ceiling would have to be raised to $19.8 trillion to put the issue of the debt ceiling to rest until 2016,”

 

““We expect Congress will at least negotiate an austerity package. But due to the myopia of politicians, the debt ceiling will probably not even be lifted by the $2 trillion needed to delete it from the election agenda in 2012,”
Big Hugs and Kisses to All!;+)

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