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D-d-d- Default!; Makes me proud to be Canadian
Topic Started: Jul 8 2011, 03:55 PM (632 Views)
PopopV2.o
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The time is coming near when the US government brings the country to the brink yet again. This time, though, it may be a bit more urgent. With, what I believe to be, a 1.5 billion dollar deficit, everyone in the United States government is agreeing to dissagree. Not only will a United States default mean a possible economic apocalypse, but it will also lead to the collapse of the American Dollar, a government shutdown, and a crappy stock market. OH? You think I'm pretending to be the master of panic? Let's break it down...
1. If the United States defaults the countries holding the debt will sell, baby sell! They will sell all their debt, making the dollar collapse. This will make investors, corporations, and banks all lose confidence in the US.
2. Deflation. People losing confidence in America will abondon ship, causing a loss of competition in virtually all markets. The few companies that do stay will likely lay people off, boast huge losses, go bankrupt, cut wages, or sell assets. Remember, they will make these ridiculous sales, which is exactly what I mean by deflation. So, as things cost less and less, companies will lose money, stocks will fall, and many small buisnesses especially will file for bankruptcy. (Pick a chapter, any chapter, namely no. 11).
3. Unemployment. So where will all the people who lost their jobs go? They'll file for unemployment benefits. The unemplyment rate will skyrocet, simply. Millions of people will lose their jobs and croud homeless shelters. Many will live in slums. Others will barely work for enough, maybe even for less than 1$ a day. With few exceptions, the jobs available will be of such poor quality you'd be lucky to earn that much.
4. No one get's a break. Any country that uses the US dollar, or trades heavily with the US of A will be badly burnt. Countries like Signapore, Japan, Germany, Indonesia, Canada ): and even the Netherlands could witness a bad recession or even worse if the US defaults.
So, even if the US doesn't default, credit rating agencies will most likely not keep the US at AAA rating for much longer. By the end of the year, it may become double F-. What are the chances this won't happen? Slim to none, so look forward to it. Relax, though, it's not like total economic apocalypse is that bad. What do you guys think about this? I'd like to hear your opinions.
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Sims2Rules
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Good thing I'm Irish!
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bonecanoe86
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Administrator and Diehard KingofdaHipHop Fanboy
There is actually historial precedent for this. Depressions are really a collapse in trust (credit) that people have in one another. The real "Great Depression" really started in 1932, when credit collapsed, not in 1929 when the stock market had its infamous Black Friday.
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B-29 Bomber
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She is not amused at Fegelein. FEGELEIN!! FEGELEIN!! FEGELEIN!!!
You know what is very disturbing: The politicians say they DON'T want to pass a Balanced Budget, but want to raise the debt limit! That's like me saying: "Hey, I've gotten my credit cards to their limits by buying plasma TVs and Xboxes and a fance house! I'm going to ask the credit company to increase my limit!". The guy doin' the spending is Obama and the Credit Company is Congress. Its insane!
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Nwahs
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Bernanke is my Bae
The funnier thing is that their plan is to cut spending. Yah, cutting spending and also keeping the Bush tax cuts for the rich (no, I mean Job-Creators! After all, that's what Fox News calls them....) , and the other tax cuts. Now how the heck do they expect to fix anything with lower taxes? What's next, minimum-wage jobs for college graduates? I'm not buying this trickle-down economics nonsense.

The problem is how the U.S government spends their money- the system is one gigantic piece of bullcrap, practically the worst in the industrialised world. Many people have talked about this, so I shall not go into detail, but the main point is, increasing the debt limit only delays this economic disaster. The thing that has to be done is not to just cut spending, but make spending more efficient and end the tax cuts. It's actually really simple, but after all, US politicians are morons, so I don't expect them to figure out.
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bonecanoe86
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Give me the budget, a pair of scissors, an entire booklet of "You owe X in tax" bills, and a million stormtroopers and I can sort this all out in half a day!
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KingofdaHipHop
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Moderator Extraordinare
So this whole debt crisis got really bad while I was gone, huh? Effing economics, what the hell will we do with them?
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Nwahs
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Bernanke is my Bae
We kill the people at congress. Easy enough.

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Elso579
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Your average everyday conservative Liberal British American:)
I like Ian's Idea better, There are some people in congress who actually give a damn about the future of America.
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PopopV2.o
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It looks like that time of the year again!
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