What's new

The United States is heading for a cliff -- and taking the world with it -- • US govt. will run out of money by Oct. 18, Treasury Dept. says

Titanium100

SENIOR MEMBER
Mar 1, 2019
4,542
-7
4,152
Country
Denmark
Location
Denmark
The United States is heading for a cliff -- and taking the world with it
Analysis by Stephen Collinson

Updated 1915 GMT (0315 HKT) September 28, 2021

The Capitol seen at dawn on Monday, Sept. 27, 2021.


This story was excerpted from the September 28 edition of CNN's Meanwhile in America, the daily email about US politics for global readers. Click here to read past editions and subscribe.
(CNN)It's a game of chicken with the global economy.

The United States is heading for a cliff over the need for Congress to lift the ceiling on how much the US government can borrow. If things go wrong, the reverberations will be felt far beyond US shores.

Since the US government spends more than it takes in through revenues, a debt default would force it to stop paying out — so military salaries, government retirement payments and other benefits would dry up. And if the US can't pay interest on its debts, the rates it pays to borrow money will probably rise — meaning that mortgages, car loans and credit card bills would also go up. Millions of Americans would probably lose their jobs and the slowing pandemic recovery would crash. Since the stability of US debt is the bedrock of the global economy, a default by Washington could plunge the rest of the world into crisis.


The unthinkable nature of these consequences is why Washington's warring politicians, generally after a period of brinkmanship and concession wringing, generally bite the bullet and vote in the dead of night to raise the debt ceiling. But this time is different.

Republicans are refusing to play ball because they say President Joe Biden's Democrats are on an-out-of-control spending spree that will balloon the national debt — currently standing at nearly $29 trillion. Their position is deeply hypocritical. For a start, Democrats voted with the GOP multiple times to raise the debt limit under Republican presidents. But more than that, the debt limit must be raised to pay for obligations that the Republicans themselves incurred by voting for massive tax cuts that favored the rich under then-President Donald Trump. It's as if the country went on a tear in Las Vegas for a week and refused to pay the credit card bill.

But Republicans want to wash their hands of the responsibility and accuse Democrats of bankrupting the country, as Biden pushes a $4 trillion bid to reshape the economy to help less well-off Americans. Because so much is at stake, they know that the Democrats will have no choice in the end but to pass the debt limit increase on their own -- and pay the political price.


'We have, frankly, nowhere else to go'
"Governments acting alone cannot overcome the problems facing our world," Canadian Foreign Minister Marc Garneau told the UN General Assembly on Monday, drawing on his own bona fides as former astronaut to make his point. "I have realized... that we all come from the same place and that we have, frankly, nowhere else to go, and that we must find a way to get along with each other," he said. "Space offers the unique perspective of seeing beyond one's own national borders."

 

MH.Yang

FULL MEMBER
Jul 21, 2021
1,636
1
3,162
Country
China
Location
China
On July 26, 2021, China and the USA negotiated in Tianjin. China gave us Deputy Secretary of state Sherman two lists. The USA only needs to complete the conditions on the list, and China will issue more CNY to stimulate production and solve American inflation. It will also buy US debt to help the USA tide over the economic crisis.
 

Titanium100

SENIOR MEMBER
Mar 1, 2019
4,542
-7
4,152
Country
Denmark
Location
Denmark
Big deal. It is not the first time and won't be the last.
If this collapse was to occur it will send shockwaves but to be honest after the world economy took a severe beating at the hands of covid everywhere is fragile but specifically the US the homelessness has grown so much it is ridiculous the government is literally paying for rent across the US now it has gotten that bad.

The US has fallen into a 3rd world country since the covid19 and their economy seems to be worst of from recovering from it because they had bad crisis from even before the covid19 got there and on top of that in post covid they experienced many major natural disasters so it was 3 successive blows and they are having a hard time cooping with it
On July 26, 2021, China and the USA negotiated in Tianjin. China gave us Deputy Secretary of state Sherman two lists. The USA only needs to complete the conditions on the list, and China will issue more CNY to stimulate production and solve American inflation. It will also buy US debt to help the USA tide over the economic crisis.
This is unsustainable for China at some capacity and will eventually allow the collapse because it would simply be out of their might to reverse it but the key is to come up with a quick replacement monatary solution and an alternative new exchange monatary this is where the focus should lay
 
Last edited:

Hamartia Antidote

ELITE MEMBER
Nov 17, 2013
25,019
24
17,718
Country
United States
Location
United States
Big deal. It is not the first time and won't be the last.
Yes, everybody cries the sky is falling...even when they are months late and they start shutting down state parks..it really isn't that big of a deal.

2018
 

Nasr

SENIOR MEMBER
Dec 9, 2018
2,709
1
5,053
Country
Pakistan
Location
Pakistan
$29 trillion is just the public sector debt, the private sector debt is 2.75x that amount. Total U.S Debt, both Public and Private, has crossed the $80 trillion marker.

America is just trying to kick the can down the road, passing the buck along to the next administration which would eventually be left with largest debt in the history of humanity.
 

Titanium100

SENIOR MEMBER
Mar 1, 2019
4,542
-7
4,152
Country
Denmark
Location
Denmark
Yes, everybody cries the sky is falling...even when they are months late and they start shutting down state parks..it really isn't that big of a deal.

2018
Not when the government is paying for the US citizens bill rent across the country the situation is seriously bad and it has never reached this stage not saying the collapse is locked but won't be surprised either if it occured suddenly. A stress call to the UN also means they have lost control over the situation and the UN governments will likely attempt to pour money into it trying to close the hule slightly that will also depend on their condition which is really not that good either and push the event slightly back but at some point it would be also out of their control
 
Last edited:

MH.Yang

FULL MEMBER
Jul 21, 2021
1,636
1
3,162
Country
China
Location
China
If this collapse was to occur it will send shockwaves but to be honest after the world economy took a severe beating at the hands of covid everywhere is fragile but specifically the US the homelessness has grown so much it is ridiculous the government is literally paying for rent across the US now it has gotten that bad.

The US has fallen into a 3rd world country since the covid19 and their economy seems to be worst of from recovering from it because they had bad crisis from even before the covid19 got there and on top of that in post covid they experienced many major natural disasters so it was 3 successive blows and they are having a hard time cooping with it


This is unsustainable for China at some capacity and will eventually allow the collapse because it would simply be out of their might to reverse it but the key is to come up with a quick replacement monatary solution and an alternative new exchange monatary this is where the focus should lay
Yes, if China wants to save the USA, it must over issuance a large number of CNY to stimulate production and exchange the US dollar foreign exchange generated by a large trade surplus. This will inevitably lead to inflation and rising house prices in China. However, China's CPI is now 0.8%, which can withstand some inflationary pressures. Of course, the premise is that the USA gives sufficient compensation.
 

GumNaam

ELITE MEMBER
Sep 23, 2016
11,474
-1
15,651
Country
Pakistan
Location
United States
well for a lot of countries, its a win win situation...if they do increase their debt ceiling then meh, business as usual but if they run outta cash then guess what, NO ONE HAS TO PAY BACK ANY OF THEIR LOANS THAT ARE IN USD ON ACCOUNT OF BEING A BANKRUPT CURRENCY OF A BANKRUPT COUNTRY! :P
 

Beast

ELITE MEMBER
Feb 5, 2011
25,933
-39
59,936
Country
China
Location
China
Big deal. It is not the first time and won't be the last.
Becos in the past, China is willing to absorb US debt. Now the era is different. Wonder why Biden gives in to Xi by releasing Meng? He is desperate to want China to absorb US debt. China is now playing hardball game. :enjoy:
 

Beast

ELITE MEMBER
Feb 5, 2011
25,933
-39
59,936
Country
China
Location
China
Biden shall not take up this US presidency. This hotseat will go down as the era of US economy bankruptcy. Shall have let Trump win and let him leave a major mark in history of US. :enjoy:
 

tower9

SENIOR MEMBER
Sep 19, 2018
3,631
-12
5,910
Country
China
Location
United States
Becos in the past, China is willing to absorb US debt. Now the era is different. Wonder why Biden gives in to Xi by releasing Meng? He is desperate to want China to absorb US debt. China is now playing hardball game. :enjoy:
China would be stupid to buy more US debt. The US has used its media as a weapon to spread the most vicious lies about China in order to create worldwide hatred against the Chinese people. It has corralled many countries into a hostile stance against China. Tried to destroy China’s tech companies. The US also most likely created covid and tried to pin the blame on China while using vaccine politics as a way to isolate China even further.

The fact that the US thinks that all this will be forgotten and China will just buy more debt is proof that the deep state are run by Zionist psychopaths who have lost their minds.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom