USA has two options to save its economy: declare default or trigger off war.

[Ponce]

i say war, not only can they blamed somone else but also steal what other have.
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USA has two options to save its economy: declare default or trigger off war.

The United States is the largest borrower in the world. The US national debt has already exceeded the level of 11 trillion dollars as of the beginning of 2009 and continues to grow like an avalanche. Experts say that the USA has only two ways to solve the problem: to either declare default or trigger off a war.

According to experts’ estimates, the probability of default on US treasury bonds is very high at the moment. The rumors are not new at all. Moreover, experts say that the USA has already started to work on an opportunity to refuse from the dollar in order to avoid debt payments.

Dmitry Abzalov, an expert with the Center for Russia ’s Political Conjuncture, said that governments currently take on the debts of corporations. “The corporate debts crisis thus becomes the crisis of governmental debts. The US debt in the beginning of 2009 amounted to $10.6 trillion. Taking into consideration the current deficit budget of the United States , as well as the prospects for the deficit of the budget during the current year, it becomes clear that the US Treasury bond market is based on no alternative whatsoever. There is no other way for investors to invest their funds with treasury bonds being the only option,” the expert told Bigness.ru.

When the world economy recovers, investors will realize that there are plenty of other opportunities for investments, the European bonds, for example (if the European economy recovers from the crisis too, of course), or the bonds of developing countries.

“The pyramid of US bonds will collapse in this case. The debt percentage grows every day, which makes the USA borrow more and more on a daily basis. America will have no chances to pay off the debt,” the expert said.

Inga Foksha, an analyst with Aton Investment Company, agrees that the US default is quite possible, although she is certain that it will not happen unless the world finds an alternative to the US dollar. The dollar will collapse immediately in case of default, which is absolutely unacceptable, because 63 percent of world reserves are saved in dollars. Their collapse will trigger the global economic collapse.

“Technically, the default of the United States may occur during three or five years, although it is too early to say that it could be possible. The USA can print new dollars to pay their debts with them,” she said.

Nevertheless, the US government bonds still enjoy investors’ support and are still considered a risk-free investment.

Dmitry Abzalov believes that the current situation with the US national debt may end with a new war. The war will destroy excessive liquidity and the current debt.

“The war in Iraq began to delay the US crisis, which started brewing in the US economy at the end of 2000,” he said.

The Americans have been trying to raise their economy with the help of military actions for decades, since the Great Depression of the 1930s. A war boosts the nation’s industry, even if a recovery is based on defense orders.

http://english.pravda.ru/world/americas/19-03-2009/107263-usa_economy_debt-0

[Apparition]

"War is the health of the state." - Randolph Bourne

[Defender]

Pravda, now there's a truly unbiased source of news as Russia, even in March 2009, absolutely has no political agenda concerning the US.

[LuckyStrike]

I disagree, there are no options to save the economy.

I don't see how the US economy was helped whatsoever by the mid east wars, the only thing that prolonged the inevitable is lowering interest rates to 0 and flooding the economy with money and cheap credit to unqualified people. This is already in the process of unwinding and another war will have no effect. We are already fighting to I fail to see how adding 1-2 more zones will improve our economic conditions by any beneficial way to the average American. Sure GDP will go up because government spending is included in GDP, but it goes up at the pure expense of the people through devaluing their currency as well as inevitably increasing taxation (as if the latter is possible)

Starting a war will not increase meaningful US manufacturing, create jobs, lower personal and government debt, cut spending which are all things we desperately need.

War IS the health of the state, but when the state wins they win at the expense of the populace.

[JohnQPublic]

Either option will lead to war.

[kregener]

I disagree, there are no options to save the economy.

This...yes...this.

[Hypertiger]

Back before any of you were born the Demand of the world was England and the British pound Stirling was the global trade medium of exchange.

That system reached maximum potential in the late 1920's and collapsed 1929-1933 and was followed by the 1933-1945 bankruptcy reorganization of the Global trade system.

In 1944 at the Bretton woods conference the USA was made the demand of teh world and the US Dollar was made the global trade medium of Exchange.

That's what was done to save the global system back then.

There is nothing the USA or world can do to save the global economy.

It's reached maximum potential just like in the 1920's and is collapsing...

There is no way to save what you currently see in operation from implosion to oblivion.

[LuckyStrike]

Back before any of you were born the Demand of the world was England and the British pound Stirling was the global trade medium of exchange.

That system reached maximum potential in the late 1920's and collapsed 1929-1933 and was followed by the 1933-1945 bankruptcy reorganization of the Global trade system.

In 1944 at the Bretton woods conference the USA was made the demand of teh world and the US Dollar was made the global trade medium of Exchange.

That's what was done to save the global system back then.

There is nothing the USA or world can do to save the global economy.

It's reached maximum potential just like in the 1920's and is collapsing...

There is no way to save what you currently see in operation from implosion to oblivion.


What are your thoughts regarding China - US relationship of today being similar to US - Britain relationship of the day? Namely us trying to prop up the failing superpower while in the process wrecking our own currency. Do you see the modern China currency peg as ultimately leading to a sever depression for them?

[gunDriller]

how could war save the economy ?

it might make some people's jobs seem more secure. i suppose wars are good for the job security of generals as well as privates and defense contractors.

[Twisted Titan]

how could war save the economy ?

it might make some people's jobs seem more secure. i suppose wars are good for the job security of generals as well as privates and defense contractors.



http://www.youtube.com/watch?v=7n4EDKUB9uo&feature=related

[SQUEXX]

It'll be war. The jooz will make sure of that! ::)

[Gypsybiker45]

I disagree, there are no options to save the economy.

I don't see how the US economy was helped whatsoever by the mid east wars, the only thing that prolonged the inevitable is lowering interest rates to 0 and flooding the economy with money and cheap credit to unqualified people. This is already in the process of unwinding and another war will have no effect. We are already fighting to I fail to see how adding 1-2 more zones will improve our economic conditions by any beneficial way to the average American. Sure GDP will go up because government spending is included in GDP, but it goes up at the pure expense of the people through devaluing their currency as well as inevitably increasing taxation (as if the latter is possible)

Starting a war will not increase meaningful US manufacturing, create jobs, lower personal and government debt, cut spending which are all things we desperately need.

War IS the health of the state, but when the state wins they win at the expense of the populace.



A war in the style of Iraq,drains an economy, they simply dont want to "win". To Win a war, the people need to be subjugated and in fear, the Iraqis are neither,and havent been since the Invasion. The Iraq war is MEANT to drain the US economy, and to cause fear in the US to gain control, thats it! However a limited conventional war with China.Or Russia would be economically beneficial, as larger, more numerous items,(Tanks, planes, ships,rifles knives GI socks,etc.) would be needed to reequip the military.The US casualties , for the entire "War on Terror" is under 5500 dead and around 40k wounded(this includes 1100 who died in theater, but not combat) compare that to the Normandy campaign with 29k,dead and 210,000 wounded or MIA, or the 50000 lost in Vietnam in roughly the same time frame, it pales in comparison, IMHO the US population has no real stomach for those losses irregardless of their fate.

[LuckyStrike]

A war in the style of Iraq,drains an economy, they simply dont want to "win". To Win a war, the people need to be subjugated and in fear, the Iraqis are neither,and havent been since the Invasion. The Iraq war is MEANT to drain the US economy, and to cause fear in the US to gain control, thats it! However a limited conventional war with China.Or Russia would be economically beneficial, as larger, more numerous items,(Tanks, planes, ships,rifles knives GI socks,etc.) would be needed to reequip the military.The US casualties , for the entire "War on Terror" is under 5500 dead and around 40k wounded(this includes 1100 who died in theater, but not combat) compare that to the Normandy campaign with 29k,dead and 210,000 wounded or MIA, or the 50000 lost in Vietnam in roughly the same time frame, it pales in comparison, IMHO the US population has no real stomach for those losses irregardless of their fate.


Explain how war (government spending) in any form or fashion is beneficial to an economy?

Just look at the trillions printed to keep the charade going for the last 2 years, it hasn't even bought us a month of prosperity. Interest rates are already at 0, they can't afford to bring them up since they can't afford Tbill rates going higher, it would also collapse the housing market.

[Gypsybiker45]

If you go to war with your creditor,the debt vanishes.

[LuckyStrike]

If you go to war with your creditor,the debt vanishes.


How would that help our economy?

Only a portion of our debt is with China. Plus we are totally dependent as an economy on not only cheap imported goods (to hide inflation for one thing) but also for them to use that money to finance our empire. So pissing off your creditor is usually not a good idea short or long term.

[Gypsybiker45]

If you go to war with your creditor,the debt vanishes.


How would that help our economy?

Only a portion of our debt is with China. Plus we are totally dependent as an economy on not only cheap imported goods (to hide inflation for one thing) but also for them to use that money to finance our empire. So pissing off your creditor is usually not a good idea short or long term.





How else do you think they will get rid of it? it accomplishes population reduction and consumption, they will fight, it is planned.Its also a bit more than "pissing of your creditor" even in a conventional Sino-US war the casualties would be in the tens of millions.If it went nuclear, close to a billion.

[LuckyStrike]

How else do you think they will get rid of it? it accomplishes population reduction and consumption, they will fight, it is planned.Its also a bit more than "pissing of your creditor" even in a conventional Sino-US war the casualties would be in the tens of millions.If it went nuclear, close to a billion.


I'm asking how it will help our economy, as in create jobs, create manufacturing that is a benefit to society.

You seem to be arguing that starting a war with China our largest creditor will erase a couple trillion from the debt and help our economic crisis. I just fail to see how. Even if it erased our current 13 trillion official debt, we still have over 100 trillion dollars of unfunded liabilities! Even if we kicked major ass in a war we would be back to this 13 trillion dollars in less than a decade, it only took 10 years to go from 4 to 14 trillion. It took 200 years to go from 0-4.

While fighting this war we will run up into the many trillions of dollars since undoubtedly there would be a draft and our military would have to double in size, where do you propose we raise this 2-5 trillion? From the people who are unemployed and heavily indebted? Or from the myriad of other countries who love our imperialism throughout the world and are only waiting to be asked to lend a helping hand?

China has us by the gonads and it would be the biggest mistake in history to start a war with them. It's like starting a war with your banker and supplier, you have no money, materials or food how long do you think the fight would last?

[dysgenic]

The first rule of empire is expansion.

[LuckyStrike]

I'm still waiting gypsy.

[kregener]

Neither of the options provided will...'save the economy'.

Default will smash it to ruins.

War will stave off collapse (reference ALL recent wars) but end up further burying us under un-repayable debt.

Slide continues...sleep resumes.

[JohnQPublic]

I'm still waiting gypsy.


Gypsy rode off into the sunset. Maybe he will swing by at some later date.

[JohnQPublic]

Neither of the options provided will...'save the economy'.

Default will smash it to ruins.

War will stave off collapse (reference ALL recent wars) but end up further burying us under un-repayable debt.

Slide continues...sleep resumes.




Ultimately default will happen. It is just a matter if we wait for it to completely destroy us, or we try and manage it.

[gunDriller]

i thought the basic plan was to print as much money as necessary to keep the economy in a state of economic Depression, like in 2010.

one of the prerequisites for the 2012 election is the willingness to attack Iran. Palin has already signalled her intent on the issue, she says the US should attack Iran. McCain obviously found it funny and seems to like the idea of attacking Iran.

Obama can buy some votes by going along with a war.

I think the economy is war-neutral at this point. they're already making big $ from the current wars.


so i don't think the US will default, but, given the degree to which Israel runs the US government, I think war on Iran is a likely event.

[keehah]

War will not save the economy. War destroys and diverts to ruin even faster. But it would be pleasant for murdering psychopaths. And sociopaths in power and mainstream media may prefer the cover an economy, life and civilization destroying war to more direct exposure of their economic lies and failure