is there a chance of an American default on debt?

 

1. Look at it this way:  assume you’ve maxxed out your credit card.  Your monthly payments need to be made, right?

   Now, let’s assume that your family budget has been in the habit of growing every year to fund your internet, large screen TV purchases, dinners out first 5 times a month and now at 20 times a month, ever higher car payments as you go from a VW to a Ford Escort, to an Impala, to a BMW, to a Mercedes S class and to a Bentley.

   Your credit card company looks at your expenditures and sees you have no more money coming in from your job.

   A decision needs to be made:

   1. they can increase your credit card debt limit to allow you to go to eating out every day and the purchase of a Rolls Royce, stacking up debt
   ---or---
   2. you can start bleeding your family dry to pay for your toys and lifestyle
   ---or---
   3. you sell the cars, cut your cable expenses and buy a slow cooker in order to continue making the payments, all the while working harder to get promotions and eventually being debt free.

   Same thing with the US.  We can continue to write the government a blank check by raising the debt ceiling and increasing taxes or we can say, “NO!” to an increased debt ceiling while at the same time, making the payment on our debts by transferring funds from social welfare programs and not increasing taxes.

   In the latter example, those that hold our debt will see that they can still have full faith in our debt because we are seriously doing something about it.  They’ll also see it if we raise the debt limit but Americans will be the ones to get screwed as taxes go up and the debt NEVER goes down.

   Better?

   Posted by Ranting Right Wing Howler       07/14/2011  at  03:44 PM  



2. V you are of course right on the money. However I see your half-wit President now thinks soaking the rich will fix everything. These shit for brains commie scumbags just cant do simple mathematics.

   I have been doing some research on various family members of late and, not that any of my relatives were ever in one, but there are pretty good records kept in what was called the “work house” As you may recall from Charles Dickens it was a fairly rigid regime where poor people would work for their keep. They also had the debtors jail where bankrupts were locked up till someone paid off their debts.

   Frankly the way things are going I can see a return to the workhouse. In Britain there are cities where over 50% of the population is in receipt of welfare in one form or another. Well I hate to break it to these people but the party is over. What bothers me though is that when the welfare cheques stop coming how will these people react? With a country that has year after year sought to take away guns from the citizens there is no way to defend yourself against the mob. At least in the US you can still get “tooled up” and that is my advice. Not that you need it as you already have a decent armoury! For that is what we are facing total anarchy. There is a reason gold is at $1600 an oz no one trusts the greenback (or the pound) any more.

   Posted by LyndonB       07/16/2011  at  10:00 AM  

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