Is America on the brink of meltdown?

michaels

Heading further OT on the one term thang but I would be very scared if that did happen as there is a good chance that the best Republicans will not run as they think their chances are poor leaving the way open for a less mainstream candidate to get the nomination making a very scary president.

Has anything the Obama administration done so far been so open to criticism? Yes may be some of the political capital spent on healthcare would have been better spent on the economy may be fixing the tax code and Doha but it was a once in a lifetime opportunity fr the democrats - would they really not have gone for it?

Euphoria1z

THe dollar will crash at some point. America will no longer be the the superpower it is. Paper currency will no longer exist. Im telling ya!!!

Wookster

Funny how the Republicans have discovered austerity when the last Republican president was the most profligate of them all.

A._Badger

Wookster wrote: »

Funny how the Republicans have discovered austerity when the last Republican president was the most profligate of them all.

That's because he was a RINO (whatever the Left may have pretended for dramatic effect).

You think the Dems hated Bush? He was just as reviled by the Tea Party.

Generali

drc wrote: »

What do people think about this article from Will Hutton in The Observer?;

http://www.guardian.co.uk/commentisfree/2011/jul/17/obama-america-economic-meltdown-murdoch

I think Mr Hutton is getting carried away. The problem isn't that the US is going to run out of money, it's that the credit card limit is going to be hit.

So what do we all think they'll do? The problem at present is one of cash flow rather than solvency. If they can't borrow any more then they'll have to have less money going out. That is a simple mathematical truth.

In that case, someone isn't going to get paid so all that needs to be decided is who that is. Given the recent record of Western Governments and taxpayers (outside Iceland) willingly bending over for the bankers, do we think it's likely that the bankers or someone else that isn't getting their money?

I think I know who is going to get paid and Mr Hutton should think things through a little further.

BTW, a similar default-lite happened in 1979 I believe and the USA retains her AAA credit rating.

1984ReturnsForReal_2

geneer wrote: »

yes. but then it has been for a while.
I'm sure they will sort something out.

Like what?

Borrow some money from the Chinese?

Buy a bigger carpet to sweep more under?

IronWolf

I honestly don't think any of the US politicians are stupid enough to let this happen. Either they will work out a compromise at the 11th hour, or someone will just cave in and agree to the others demands

Conrad

I've made a point of following Huttons pronoucments these last few years and a common theme is apparant. He tend sto be of the apocalyptic flavour. I enjoy his prose and style but treat his synopsis with caution.

Loughton_Monkey

Anyone who understands the position cannot believe this is "meltdown".

It is merely a self-imposed 'blip' in an otherwise long-standing and continuing trend. The trend is the slow (but accelerating) transfer of wealth from West to East. The West may have started with a bigger bank balance, but it is now being heavily depleted for a number of reasons:

• Paying itself too much.
• Not working hard enough.
• Building up a huge expensive bureacracy.
• Tolerating idleness and indeed promoting it through 'benefits'.
• Living on credit, with all its associated costs.

Until China makes the same mistakes, how can this trend be stopped or even minimised (never mind reversed)?

This is not complicated to understand is it?

michaels

No one gets it despite the Greek example being right up in front of their noses. Yes we are transferring 'promises to pay' to China and Germany who in return are giving us the benefit of their labour and raw materials in the form of flat screen TVs and Mercedes.

Now consider the Greeks - when it is seen that they can't/won't pay back their creditors they will still keep all the cars and TVs where as the creditors will find they have been working for nothing and have given away the fruits of their labour.

Which lot are smarter?

Loughton_Monkey wrote: »

Anyone who understands the position cannot believe this is "meltdown".

It is merely a self-imposed 'blip' in an otherwise long-standing and continuing trend. The trend is the slow (but accelerating) transfer of wealth from West to East. The West may have started with a bigger bank balance, but it is now being heavily depleted for a number of reasons:

• Paying itself too much.
• Not working hard enough.
• Building up a huge expensive bureacracy.
• Tolerating idleness and indeed promoting it through 'benefits'.
• Living on credit, with all its associated costs.

Until China makes the same mistakes, how can this trend be stopped or even minimised (never mind reversed)?

This is not complicated to understand is it?