U.S. TO DEFAULT ON ITS DEBT – SUMMER 2009

[kewp]

The people of Iceland, until a few weeks ago one of the richest countries in the world, no longer have access to the money in their bank accounts. That should be a warning sign for everyone, wherever you live. No matter how much money you have in the bank, if you can’t get to it, you can be poor from one day to the next.

Remember, we have a get out of jail free card on this one.

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

Again, this is not inflationary in the classical sense as its replacing liquidity destroyed by debt defaults. It’s like blowing air into a leaky balloon.

[urbanrealtor]

Well put Kewp.

Good post.

[urbanrealtor]

Well put Kewp.

Good post.

[urbanrealtor]

Well put Kewp.

Good post.

[urbanrealtor]

Well put Kewp.

Good post.

[urbanrealtor]

Well put Kewp.

Good post.

[Arraya]

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…

I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.

[Arraya]

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…

I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.

[Arraya]

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…

I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.

[Arraya]

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…

I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.

[Arraya]

As the dollar is a fiat reserve currency the Fed can print as much money as it needs to meet demand. The absolutely worst case is that all the banks get Federalized and new money goes right from the printing press to the ATM machines.

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

That is what they are assessing at these summits. There has been ever growing drumbeat of articles stating that many big players besides the petrostates in the world do not want it or at least have alluded to it. China, France, Germany to name a few…

I’m sure nobody here can quantify which would cause the least adverse affects to the global economy, printing or defaulting. However, I’m sure it already has by all the heads of finance throughout the world.

[kewp]

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

Actually, the reverse is true. If the Fed doesn’t print money, then our economy collapses and renders our currency worthless (or close to it).

Something like 85% of our hard currency is in circulation overseas. Mostly in the form of $100 bills used for black/gray-market transactions. It’s critically important for these to remain strong in the global marketplace to prevent hyper-inflation from them all pouring back into our country.

The Fed isn’t printing money for the foreign banks (unless they specifically ask for it, which some of them are now.) The Fed is printing money to keep the banks from going out of business due to bad loans. This keeps the sum total of money supply relatively constant within our borders.

Both printing and defaulting is built into the system. The only adverse affects are if either one becomes too dominant an economic force.

[kewp]

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

Actually, the reverse is true. If the Fed doesn’t print money, then our economy collapses and renders our currency worthless (or close to it).

Something like 85% of our hard currency is in circulation overseas. Mostly in the form of $100 bills used for black/gray-market transactions. It’s critically important for these to remain strong in the global marketplace to prevent hyper-inflation from them all pouring back into our country.

The Fed isn’t printing money for the foreign banks (unless they specifically ask for it, which some of them are now.) The Fed is printing money to keep the banks from going out of business due to bad loans. This keeps the sum total of money supply relatively constant within our borders.

Both printing and defaulting is built into the system. The only adverse affects are if either one becomes too dominant an economic force.

[kewp]

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

Actually, the reverse is true. If the Fed doesn’t print money, then our economy collapses and renders our currency worthless (or close to it).

Something like 85% of our hard currency is in circulation overseas. Mostly in the form of $100 bills used for black/gray-market transactions. It’s critically important for these to remain strong in the global marketplace to prevent hyper-inflation from them all pouring back into our country.

The Fed isn’t printing money for the foreign banks (unless they specifically ask for it, which some of them are now.) The Fed is printing money to keep the banks from going out of business due to bad loans. This keeps the sum total of money supply relatively constant within our borders.

Both printing and defaulting is built into the system. The only adverse affects are if either one becomes too dominant an economic force.

[kewp]

I fully understand the concept. However this is where I disagree. Printing our way out of debt has consequences not only to us but to the world. The question is will the world take these printed dollars or will they just say screw it and get another reserve currency rendering the dollar worthless.

Actually, the reverse is true. If the Fed doesn’t print money, then our economy collapses and renders our currency worthless (or close to it).

Something like 85% of our hard currency is in circulation overseas. Mostly in the form of $100 bills used for black/gray-market transactions. It’s critically important for these to remain strong in the global marketplace to prevent hyper-inflation from them all pouring back into our country.

The Fed isn’t printing money for the foreign banks (unless they specifically ask for it, which some of them are now.) The Fed is printing money to keep the banks from going out of business due to bad loans. This keeps the sum total of money supply relatively constant within our borders.

Both printing and defaulting is built into the system. The only adverse affects are if either one becomes too dominant an economic force.

[Author]

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