If the US defaults on its debts on August 2

[Chinese-Dragon]

You forget to mention the Chinese debt!!!!,, but amazingly they kept investing until it got to 3 trillion dollars!!!!!!

If the US dollar goes right down to zero (i.e. total collapse) then we will have lost 1.1 trillion dollars.

Which leaves 2 trillion dollars in currency reserves, still the largest currency reserves in the world by far. If India can survive with only 300 billion in currency reserves, we will do just fine with 2 trillion.

And this is even assuming a total collapse of the US, which is very unlikely. What will probably happen, is that the value of the dollar will go down.

 

[jeypore]

Contrary to public perception, China does NOT need the USA.

Once the USD$ dumping starts , every other central bank would join the fray. Would any abnk want to be the last man standing ?

Have you ever, ever, ever, ever, ever thought about about how many times Central banks of China has Defaulted?????????????????

Maybe that is one of the reason that currency is not traded in the international community.............being the one of the best economy in the WORLD..

 

[Abii]

The Argentina today , is a far cry from theArgentina in the 90s. It is akin to comparing apples to ...rotten apples. Zimbabwe defaulted on their currency obligation and experienced runnaway inflation . Zimbabwe is also still around.

China's Total reserves is US$3.xx Trillion , Euro$4.xx Trillion or AUD$3.xx Trillon . The use of USD ,AUD$ or Euro $ in this case is merely as a indicative benchmark

China's ACTUAL holding of US Treasuries as of April 2011 is just slightly more than 1.1 Trillion , or about 30% of their total reserves. This is a small amount for the Chinese , whoose total reserves exceed AUD$3.4 Trillion (or Euro$3.9 Trillion ) currently

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt


One has to remember most of China’s wealth is not in dollars, it is in renminbi- CNY. If China were to dump the USD$ treasuries , they would lose on their USD$ international reserves, but they would most certainly gain on every other asset that they own. This includes the vast amount of commodities that they have hoarded .

Contrary to public perception, China does NOT need the USA.

Once the USD$ dumping starts , every other central bank would join the fray. Would any abnk want to be the last man standing ?

Oh...the USA would still be around in ages to come .
Just like Argentina . Just like Zimbawee. What a mess.

Why can't the USA just live within their means , just like everybody else.
I hope that it doesn't have to come to that .

The USA is a great nation. Just stop using credit cards !!

quoted for the motha fukin truth!!!

 

[killeragent]

myself here in america, am sitting calmly without any worry..Knowing that US is gonna get solution for 100% surity.
But i don't know why thread starter got so anxious and why is this thread even still running

 

[Abii]

Peter Chiff predicted the 2007 financial crisis and the housing bubble so his opinion on this debt crisis is gold

 

[jeypore]

And this is even assuming a total collapse of the US, which is very unlikely. What will probably happen, is that the value of the dollar will go down.

So, that would be good to the whole world because oil would become cheaper!!!!!!!!!!

 

[Abii]

myself here in america, am sitting calmly without any worry..Knowing that US is gonna get solution for 100% surity.
But i don't know why thread starter got so anxious and why is this thread even still running

good for you
I on the other hand am worried about the future. I'm actually thinking about going to graduate school in Europe instead of Canada.

If you know ANYTHING about economics you would know that this is a real and present problem. It's not about the debt ceiling, it's about much more than that and the politicians fighting in Washington know it. that's why they're at each other's throats instead of passing the bill like they've done tens of times over the past two decades alone.

 

[Awesome]

myself here in america, am sitting calmly without any worry..Knowing that US is gonna get solution for 100% surity.
But i don't know why thread starter got so anxious and why is this thread even still running

Tell that to all the US media outlets. This has been headline news for over 2 weeks.

 

[Awesome]

Peter Chiff predicted the 2007 financial crisis and the housing bubble so his opinion on this debt crisis is gold

This is a self-inflicted crisis. The US needs to live within its means, it should have worked out some way to cut down spending in the multitudes of trillions without borrowing any more.

 

[jeypore]

This is a self-inflicted crisis. The US needs to live within its means, it should have worked out some way to cut down spending in the multitudes of trillions without borrowing any more.

Agreed completly, but if the GDP of US increases from 14 trillion to 17 trillion in next 5 years, then would the decision made today of raising the debt ceiling make a good decision?????? Isn't that the question...

Keep in mind, that US has been thru this same scenario in the past around the WWII era....

 

[Markus]

Agreed completly, but if the GDP of US increases from 14 trillion to 17 trillion in next 5 years, then would the decision made today of raising the debt ceiling make a good decision?????? Isn't that the question...

Keep in mind, that US has been thru this same scenario in the past around the WWII era....

Difficult!

The US GDP is expected to rise 2 % over the next few years. That would make it 15.5 trillion USD at max after 5 years.

 

[53fd]

Excellent video explaining the problems the US faces when the US raises the debt limit:

 

[Abii]

Difficult!

The US GDP is expected to rise 2 % over the next few years. That would make it 15.5 trillion USD at max after 5 years.

lol not even that
Obama's budget this year was based on a 4 percent GDP increase. They will have at most <1 %!!

 

[Abii]

Agreed completly, but if the GDP of US increases from 14 trillion to 17 trillion in next 5 years, then would the decision made today of raising the debt ceiling make a good decision?????? Isn't that the question...

Keep in mind, that US has been thru this same scenario in the past around the WWII era....

how's that gonna happen?
3/4 of the American economy is consumer based. Job rates are falling and with the credit and housing crisis the Americans are becoming poorer not richer. Where are these Americans gooing to find the money to spend? In order for the GDP to increase by any sig percentage points the Americans have to increase their spending.
good luck with that.

 

[killeragent]

Tell that to all the US media outlets. This has been headline news for over 2 weeks.

US media is famous for making hype and taking people to their feets and everyone knows that.
This time is best for them to gain some extra TRP.