hsyq8xg@[EMAIL PROTECTED]
wrote:
>The Subprime Nightmare: 'Pros Warn Of Panic Over Credit' -' Financial
>Firms Face $600 Billion Credit Losses: UBS'
>
>Pros Warn Of Panic Over Credit
>
>By Peralte C. Paul
>The Atlanta Journal-Constitution
>1 March, 2008
>
>Taken in context, the subprime mortgage mess is just a small slice of
>a multitrillion-dollar debt pie.
Unlike in the housing market where at least you have actual homes at
some real world collateral value, nothing underlies a double digit
trillion dollar debt default of the USA Government. True to form
the media are not writing something like:
``USA bankrupt in the near future
(financial editor)
At the current debt rate the
USA Government which started
lending in ... , like so
many Governments are used
to doing, will be bankrupt
in the coming years. Debt
stands at above 9 trillion,
tax income is about 2.5
trillion a year. Even at
low interest rates the debt
will soon become impossible
to pay back. Expectation
is new lenders will demand
high interest because of
the bankruptcy risk and
increasingly stay away from
Government debt certificates,
causing the Government to be
unable to pay old debt with
new debt. It does not get
enough taxes in to pay for
the debt with taxation money.
The shockwave of a double
digit trillion dollar debt
default of most of Government
debt, issued to both the
private and cor****ate world,
threatens to send financial
shockwaves around the world.
The problem is magnitudes
worse then the mortgage
crisis.
"Unless something drastic
is being done to offset the
problem," .... said, "for
instance printing additional
amounts of dollars to pay for
the debt, the outlook for the
USA Government and economy
is bearish [code word for
going down]." However, debt
expert ... from points out
that that printing 9 trillion
of dollars to pay for debt
causes foreign holdings
of dollar to devalue,
motivating foreign owners to
push their dollars back into
the American economy to buy
goods while those dollars are
still worth something. If
that happens, the combined
effect of Government printing
and foreign cash coming back
may devalue the dollar to
such an extend that what now
costs 1 dollar may then cost
10 or 100 dollars. "We would
be left struggling the beast
of hyperinflation." If the
debt is allowed to default
without printing fresh money,
then the entities holding
the trillions of dollars in
debt certificates will have
to write off those trillions
of dollars. This may spell
their bankruptcy, trouble
for people who are relying on
debt certificates to sustain
them without having to work.
"The word in the markets
is that USA Government debt
certificates are hot, hot as
in hot potatoe ... it is hard
to tell whether we will be
bailed out or not. It will
probably depend on who has
the debt certificates to
whom the political favors
will flow."
Another source spoke strictly
off the record. "Don't let
anyone in on this secret,
because the People most not
know what is going on," he
said "as they will demand
an end to the profitable
Government debt racket." This
knowledge can throw
demand for USA debt into a
tailspin. The Government
would have to promise
higher interest rates,
in turn making technical
bankruptcy come even quicker,
fueling the fear. "We are
working hard to cover our
own liabilities" he said "and
try to make sure the People
are left holding the bag,
one way or the other."
Dark clouds on the
horizon. Wherever if anywhere
the favors may land within
the group that owns USA
debt, the instability is
not likely be a good thing.
Perhaps gathering food
buffers to survive a nuclear
winter won't prove such a bad
investment after all !
Definitely not a story any media is re****ting, which is highly
odd given it is so predictable / obvious, and given that computing
bankruptcy is the bread & butter of the finance industry. I guess
that means these media are working together at some level with the
people that are financially cra****ng our Governments (from the side
of politics and/or the side of finance). One of the things to do in
case of a crash: don't put people and groups that expanded Govnmnt
debt back in to power. They will go on serving themselves only, and
simply act depending on their own financial positions (if they hold
debt they will bail debt out, if they don't then they will not, and
they will manipulate their positions depending on political expediency
of either, and trying to hurt their financial and political enemies
in the process). If all seems chaos, the best option may be to boot
up the economy with new money at starting positions from scratch
(the problem of capital flight is a difficult one, other nations
will have to hunt those funds down and zap them, potentially using
their own new currency distributed at starting positions; flight
in commodities can be dealt with by determining a new owner at
economic starting positions; the debt problem seems global, hence
it is only natural other Nations will also be restructering and
rebooting their economies at starting positions).
(By the way: the French president has apparently complained that
France is already bankrupted.
http://www.depers.nl/buitenland/105119/Premier-Frankrijk-is-bankroet.html
<Quote/translate>
.... France is bankrupted as a concequence of the chronic funding
shortages in the past 15 years. That was said by the French
premier Francois Fillon friday. "This can not go on like this," he
said. Before 2012, when the next presidential elections will be
held, the budget should be balanced according to him. President
Nicolas Sarkozy said he would attempt to bring the shortage back
to 2.4 percent. Only in 2012 will there be no shortage he said. </>)
I'd say simply default on all the debt: cheaper & quicker, may
the chips fall where they fall because nobody should even buy
Govnmnt debt to begin with. Defaulting hurts people who are doing
bad things, they shouldn't get a profit from that. It is a waste
of valuable tax money to pay back those debts IMHO.
--
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sign petition for Democratic
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