General Discussion

grantcart

(53,061 posts)

29. Rather confusing

Fri May 25, 2012, 11:47 AM

May 2012

1) Default on its debt? Did you mean to say "not pass the debt ceiling". It is not possible for the US to default on its debt as the constitution specifically states that all debts must be paid. If the debt ceiling increase is not passed drastic cuts would have to be made but the debts would be serviced.

2) The reason that the Japanese pay low interest rates on their currency is that while their public debt is larger as a percentage of GNP their private debt is non existent and they have the largest personal savings in the private sector. Much of the private savings goes to buy bonds giving them a permanent self financing pool. Also sovereign funds don't look at just public debt but also look at private debt when investing in bonds. On that index Japan's total debt is low.

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I was listening to Paul Krugman and realized why the GOP wants the U.S. to default on its debt [View all] LuckyTheDog May 2012 OP

K&R Odin2005 May 2012 #1

THE REPUBS SEE A DESTROYED AMERICA AS GOOD FOR NO HOLDS BARRED BUSINESS HowHasItComeToThis May 2012 #30

The Democrats wouldn't become powerless if Romney took office MadHound May 2012 #2

"Perhaps the Dems could find the backbone..." LuckyTheDog May 2012 #5

They can simply vote to change the filibuster rules. Point, Set, Game. olegramps May 2012 #10

And they will. toddwv May 2012 #21

Yep - the general population has NO idea how close to the precipace Cosmocat May 2012 #47

Of course if "our" interest rates go up.. annabanana May 2012 #3

The Republicans would be shooting themselves in the foot. Zalatix May 2012 #4

Paul Krugman Guy Whitey Corngood May 2012 #6

Do you mind if I grab that picture? That is a classic!! madinmaryland May 2012 #24

Spread it far and wide. I also liked his cameo in Get Him Guy Whitey Corngood May 2012 #28

You give them too much credit. dawg May 2012 #7

The US Constitution requires the US to pay its debts. We have already spent the money. JDPriestly May 2012 #13

An honest to goodness default is almost impossible for the U.S. anyway. dawg May 2012 #17

This is the part about electing cases of arrested development to congress I hate most. PDJane May 2012 #8

The Fed can print more money to prevent default TBMASE May 2012 #9

Is that why they want to end the Fed? nxylas May 2012 #15

I think that's mostly the Ron Paul types TBMASE May 2012 #31

Any honest person with a conscience that knows what the Federal Reserve is all about, Larry Ogg May 2012 #36

They have to destroy the government in order to save it.... lastlib May 2012 #11

I believe that has always been the xxqqqzme May 2012 #14

Living in one of twelve "districts" too! Proud Liberal Dem May 2012 #37

And the US would be easy prey for the up-and-coming imperialists that do exist in JDPriestly May 2012 #12

Mexico, Brazil, China.. DonCoquixote May 2012 #34

I think the basic plan is to sell off the government function to private enterprise. zeemike May 2012 #16

And THAT would be even worse than the Dark Ages. Zalatix May 2012 #25

Never thought of it like that but you are right. zeemike May 2012 #32

The US isn't that important... CoffeeCat May 2012 #43

This is a description of a GOP Turbineguy May 2012 #18

Doesn't it matter too that the GOP has hedged its bets on us with FOREIGN assets? nt patrice May 2012 #19

This is incorrect cthulu2016 May 2012 #20

Agree. The GOP has ways of achieving what the OP fears without the need of default. harun May 2012 #22

+1 KurtNYC May 2012 #38

Reps are playing with debt ceiling to exacerbate the effects of the global economic crisis abelenkpe May 2012 #23

I keep doing this (to little seeming avail) hfojvt May 2012 #26

The constitution forbids defaulting on The Second Stone May 2012 #27

Rather confusing grantcart May 2012 #29

Your part 2 is completely wrong. girl gone mad May 2012 #41

Well atleast your consistent. grantcart May 2012 #42

Their concerted desperation to stop Obama at all cost lunatica May 2012 #33

Yes, they and their US Chamber of Commerce friends mean us no good. Mittens is their hero, hiding... freshwest May 2012 #35

You hit the nail on the head! jimlup May 2012 #39

so why can Japan do this and we can't? Rosa Luxemburg May 2012 #40

A lot of hyperbole in this post... progress2k12nbynd May 2012 #44

No, if Rmoney wins quaker bill May 2012 #45

Lucky, +1000 n/t dotymed May 2012 #46