If the US defaults on its debts on August 2

[Abii]

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.

just like they did before the credit and housing crisis? The media was over-whelmingly positive before it all began.

 

[TOPGUN]

Infact, currencies traders knew this way back. Infact currencies trading between Canadian dollars and American dollars is so volatile that you could lose your shirt...

Iam not loosing jack my friend... thanks to all mighty GOD .

 

[Maritimer]

The US will not default on the bonds or interest payments. If the lawmakers can't get a compromise on the budget, there may be delayed payments on social security or pensions. The US and the world can live with a ratings downgrade to AA. The more important worry for the US is the threat of a double dip recession and high unemployment rate. Businesses have to be more innovative, create jobs in the economy and start producing stuff. There is no other solution, the debt ceiling and spending cuts are just short-term measures.

 

[Abii]

The US will not default on the bonds or interest payments. If the lawmakers can't get a compromise on the budget, there may be delayed payments on social security or pensions. The US and the world can live with a ratings downgrade to AA. The more important worry for the US is the threat of a double dip recession and high unemployment rate. Businesses have to be more innovative, create jobs in the economy and start producing stuff. There is no other solution, the debt ceiling and spending cuts are just short-term measures.

how can the US live with that? They already have trouble with the AAA rating. Increased borrowing rates will just make things worse. You yourself are talking about the possible future recession. Add the increased borrowing rates and even bigger down grades in the not so distant future (which will bring even higher borrowing rates) and you will have a major catastrophe that can't be reversed. America's economy is 3/4 consumer spending. When you already have this much debt, you must have a strong economy to be able to start paying it off and they don't. They haven't even recovered from the last recession.

You guys don't seem to understand the real issue. The Americans have increased the debt ceiling 77 times ove the past 60-70 years, 10 times in the past decade alone. The problem is that this time they realize that they can't take more debt. If they do, they MUST cut at least 4 trillion from spending soon and I'm sure it won't happen. They are actually increasing military spending in this cliamte.
They are volunteerly destroying themselves.

55 billion foreign aid
600 billion military spending

cut down on those two and you're on your way to fixing the country but...

 

[LeGenD]

An update:

'Very close' to a debt deal, Senate's top Republican tells CNN

As I predicted before (referred in post number 152), it is unlikely that a deal will not take place. The deal is expected to take place in the interest of the nation and also the entire world.

US will not default.

 

[Abii]

An update:

'Very close' to a debt deal, Senate's top Republican tells CNN

As I predicted before (referred in post number 152), it is unlikely that a deal will not take place. The deal is expected to take place in the interest of the nation and also the entire world.

US will not default.

debt deal or no debt deal, the debt still exists
with the coming downgrade, the debt will only accumulate faster

 

[Roybot]

BBC News - Obama announces US deficit deal between party leaders

US President Barack Obama says Republican and Democratic leaders have reached an agreement on raising the US debt limit and avoiding default.

He said the deal would cut $1tn of spending over 10 years, and set up a committee to report by November on a proposal to reduce the deficit. Congress still has to approve the deal, and no votes are expected until Monday at the earliest. The parties face a Tuesday deadline to raise the $14.3tn debt limit.

 

[Chinese-Dragon]

BBC News - Obama announces US deficit deal between party leaders

And there we go.

Only $1 trillion in cuts though? That doesn't seem like anywhere near enough.

 

[Juice]

Rats, no disintegrating and warfare in the streets? Like I said...

 

[Mosamania]

Raising the debt limit = postponing the inevitable. The US will deal with the problem later although it will be much bigger then but "Ill cross that bridge when I get to it" mentality is still there.

 

[somebozo]

Looks like OP is rejoicing the news that US may default on debt. I can't fathom even in dreams insulting country that I am citizen of. But this guys is living all his life in all luxuries but his loyalty belong to somewhere else i seems..you guys will never change..and it is waste of time to think about your loyalties and honesty..your type of guys are disgrace to humanity..

Dude, its about time you realize that America is a gaint pot of gold open for everyone to come and dig! Indians being the first to begin with. Please stop your bollywood style emotion fakeness, the cosmetic effect wont hold too long.

The US still has an immense technological and industrial might to sell out. They can offer a lot of tech and goods in exchange of debt.

 

[jdme]

Dram is over..

 

[newdelhinsa]

Good for all economies.

 

[LeGenD]

debt deal or no debt deal, the debt still exists
with the coming downgrade, the debt will only accumulate faster

Can you think of a better outcome?

This armaggeddon mentality can lead to WW3 and it won't be good for any country.

Americans need some reality check too. First they gave Obama a chance and later on they gave Republicians a lot of power, which turned out to be blunder.

The Republicians just for the sake of teaching Obama a lesson initiated all of this drama. If the opposition is too strong, it can become a big hurdle on the path of a government.

For the first time it seems that the very ideals of democracy may need to be rechecked.

Mr. F. Zakaria summed the situation in a good fashion:

We face downgrades and investor panic not because of our deficits but because we are behaving like deadbeats, refusing to pay our bills, pouting while the bill collector waits at the door.

 

[Abii]

Rats, no disintegrating and warfare in the streets? Like I said...

buddy, the debt limit is raised, so what?
your rating will be cut to AA b/c you didn't meet the 4 trillion dollar cut demanded by the credit agencies. That's 100 billion dollars in EXTRA interests every year! To pay that every American will have to pay higher interest rates.

What's doubly worrying is the GDP growth at less than 1 percent. That means in a year's time, the foreign debt will be above 100 percent of GDP. Why are you happy?