Is The US Bankrupt.....?
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Is The US Bankrupt.....?
It is looking increasingly likely that the US is slipping away, how do you all feel about this?
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Shirleypal
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Psychicwolf
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Maaaaaybe...
Are we insolvent? Yes, for the most part. Bankrupt? Not until the power of the printing press cools and when Europe, Japan and China decide to quit funding our debt.
The U.S. has unprecedented, massive amounts of current and coming debt. Foreign countries have experienced their own crises, and they cannot offer added levels of debt funding for the U.S. Even if they could, they are unlikely to do so.Productivity is declining, and everything the government is doing is further hurting productivity.The U.S. is printing unprecedented, massive amounts of money and no longer has an ability to control inflation and deflation.
China is making loud signals about the declining value of their U.S. Treasury holdings, and backing up their words with consistent moves from long-term treasury holdings to short-term treasury holdings. They are also quite vocal about the need for the world to move away from the U.S. dollar to a new global currency.
Just today, China has:
China requests reserve currency debate at G8 -sources
July 1 (Reuters) - China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said on Wednesday.
One G8 source who was involved in the negotiations said China made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L'Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt.
This forum, the so-called "G14", meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement.
The euro EUR= surged around half a cent to session highs above 1.42 against the dollar immediately after the news.
A European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: "Any country at the meeting can raise issues they see fit."
"But whether there is a specific mention in the communique remains open," said the European source, adding that sherpas would discuss this further in preparatory talks on Friday.
The debate centres on proposals by some emerging powers that an alternative should be found to the U.S. dollar as the global reserve currency, to reflect the shifting balance of power in the globalised economy.
China has been particularly vocal. It holds more U.S. Treasury debt than any other country and has expressed fears that Washington's huge spending on economic stimulus programmes could spark inflation, hurting the value of China's dollar-denominated reserves.
China's central bank governor said in March the world should consider using the International Monetary Fund's Special Drawing Rights (SDRs) as a super-sovereign currency. The SDR is an international reserve asset allocated to IMF members and its exchange rate is determined by a basket of dollars, euros, sterling and yen.
Last month, Russian Finance Minister Alexai Kudrin even suggested that China's yuan CNY=CFXS could become a world reserve currency. Russia is the world's No. 3 biggest holder of foreign exchange reserves and has also expressed unease about the volatility of the dollar.
But China's proposal to use SDRs failed to gain ground after several world leaders, and officials from the IMF, backed the dollar as the global reserve currency. (Reporting by Reuters bureaux)
http://www.reuters.com/article/usDollar ... 7120090701
If we lose reserve currency status energy costs could triple, even quadruple and we might well have to default on all that outstanding debt we have (about 11 trillion currently) and that could cause this country a bankruptcy.
Are we insolvent? Yes, for the most part. Bankrupt? Not until the power of the printing press cools and when Europe, Japan and China decide to quit funding our debt.
The U.S. has unprecedented, massive amounts of current and coming debt. Foreign countries have experienced their own crises, and they cannot offer added levels of debt funding for the U.S. Even if they could, they are unlikely to do so.Productivity is declining, and everything the government is doing is further hurting productivity.The U.S. is printing unprecedented, massive amounts of money and no longer has an ability to control inflation and deflation.
China is making loud signals about the declining value of their U.S. Treasury holdings, and backing up their words with consistent moves from long-term treasury holdings to short-term treasury holdings. They are also quite vocal about the need for the world to move away from the U.S. dollar to a new global currency.
Just today, China has:
China requests reserve currency debate at G8 -sources
July 1 (Reuters) - China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said on Wednesday.
One G8 source who was involved in the negotiations said China made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L'Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt.
This forum, the so-called "G14", meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement.
The euro EUR= surged around half a cent to session highs above 1.42 against the dollar immediately after the news.
A European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: "Any country at the meeting can raise issues they see fit."
"But whether there is a specific mention in the communique remains open," said the European source, adding that sherpas would discuss this further in preparatory talks on Friday.
The debate centres on proposals by some emerging powers that an alternative should be found to the U.S. dollar as the global reserve currency, to reflect the shifting balance of power in the globalised economy.
China has been particularly vocal. It holds more U.S. Treasury debt than any other country and has expressed fears that Washington's huge spending on economic stimulus programmes could spark inflation, hurting the value of China's dollar-denominated reserves.
China's central bank governor said in March the world should consider using the International Monetary Fund's Special Drawing Rights (SDRs) as a super-sovereign currency. The SDR is an international reserve asset allocated to IMF members and its exchange rate is determined by a basket of dollars, euros, sterling and yen.
Last month, Russian Finance Minister Alexai Kudrin even suggested that China's yuan CNY=CFXS could become a world reserve currency. Russia is the world's No. 3 biggest holder of foreign exchange reserves and has also expressed unease about the volatility of the dollar.
But China's proposal to use SDRs failed to gain ground after several world leaders, and officials from the IMF, backed the dollar as the global reserve currency. (Reporting by Reuters bureaux)
http://www.reuters.com/article/usDollar ... 7120090701
If we lose reserve currency status energy costs could triple, even quadruple and we might well have to default on all that outstanding debt we have (about 11 trillion currently) and that could cause this country a bankruptcy.
Dance to heal the earth. Not just when you're dancing, but always. Live the dance, whenever you move, in all you do, dance to heal the earth.
Re: Is The US Bankrupt.....?
Janus232 wrote: It is looking increasingly likely that the US is slipping away, how do you all feel about this?
Yes, the US is bankrupt, officially since June 5, 1933. But who is willing to see the truth these days? The debate today centers on how many abracadabra trillions should be allocated to the global corporate ganglion which is choking this nation.
Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:
"Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.
It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.
...
There is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration." Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.
...
America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order!" - source
Last edited by SquidInk on 07-01-2009 11:26 PM, edited 1 time in total.
For if it profit, none dare call it Treason.
China wants diversified global monetary system: Govt
"We hope that in the future the international monetary system will be diversified.... If this issue (of a new global reserve currency) is raised by leaders during the meeting, it is nothing strange, it is natural.... We are all discussing how to respond to the financial crisis... this issue is under that framework"
http://www.google.com/hostednews/afp/ar ... HEGAw12TYw
"We hope that in the future the international monetary system will be diversified.... If this issue (of a new global reserve currency) is raised by leaders during the meeting, it is nothing strange, it is natural.... We are all discussing how to respond to the financial crisis... this issue is under that framework"
http://www.google.com/hostednews/afp/ar ... HEGAw12TYw
.... Techno Tribal Positively Primal
Shamanic Anarchistic Archaic Revival....
Shamanic Anarchistic Archaic Revival....
We are not materially bankrupt --- yet. But we were spiritually, intellectually and culturally bankrupt more than a third of a century ago...
We are all staggering around amid the ruins of a once-great culture, one whose last efflorescence in the years between 1945 and 1973 I was privileged to witness.
This situation has been so obvious to me for so long that I feel that I don't even need to defend it...
We are all staggering around amid the ruins of a once-great culture, one whose last efflorescence in the years between 1945 and 1973 I was privileged to witness.
This situation has been so obvious to me for so long that I feel that I don't even need to defend it...
"Fuggedah about it, Jake --- it's Chinatown!"
Sometimes I could cry.We are all staggering around amid the ruins of a once-great culture
* moderator edit: ibme, when you use the quote feature, do not delete the information from the quoted material which identifies the original poster - or otherwise alter any text of the quoted material. It is okay to abbreviate the quoted material.
China attacks dollar’s dominance
”We should have a better system for reserve currency issuance and regulation, so that we can maintain relative stability of major reserve currencies exchange rates and promote a diversified and rational international reserve currency system”
http://www.ft.com/cms/s/0/81f3125a-6cae ... abdc0.html
”We should have a better system for reserve currency issuance and regulation, so that we can maintain relative stability of major reserve currencies exchange rates and promote a diversified and rational international reserve currency system”
http://www.ft.com/cms/s/0/81f3125a-6cae ... abdc0.html
.... Techno Tribal Positively Primal
Shamanic Anarchistic Archaic Revival....
Shamanic Anarchistic Archaic Revival....
US budget deficit at $1 trillion
"Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run"
http://news.bbc.co.uk/2/hi/business/8148875.stm
"Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run"
http://news.bbc.co.uk/2/hi/business/8148875.stm
.... Techno Tribal Positively Primal
Shamanic Anarchistic Archaic Revival....
Shamanic Anarchistic Archaic Revival....
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Shirleypal
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