Anyone want to make a bet on when US goes bankrupt? (Fearless Blue)

Did anyone try to copy a free coupon and cash it in at a supermarket?

We have a rash of it these days locally.

Quantitative easing exchanges long-tem illiquid assets for the most liquid asset of them all, cash. As the monetary base remains constant, the impact on inflation is marginal, and even doubtful on our situation. Still, it is better than the alternative - doing nothing.

Following the quantitative theory of money, the way quantitative easing might have an impact is by increasing the velocity of money. However, in a liquidity trap the velocity of money tends to precipitate... like this. Some argued the money from quantitative easing made way to speculation on commodity markets back this Summer, but that was temporary and the main drive there are the growing economies of India and China.


The point of raising taxes is to balance the budget to make US debt sustainable. It is an untimely concern, but debt sustainability is a long-term issue.

Lol print more money. Yes, I'm sure that solves all our problems. Like the dollar isn't inflated enough already, right? Haha

Ha ha. You are hitting your keyboard and you aren't saying anything. Ha ha.

The way I understand the last round of QE, govt bonds (illiquid assets) where bought from banks and institutions for hard cash. This cash was supposed to make the banks more confident in lending and so the money would influence growth.
But banks being banks, they just kept the cash in their coffers. Why this latest round in the UK should be any different beats me. A large portion of it will end up in bonuses. Anyway, I am sure it is not that simple.

commercial banks don't lend. they create. I don't like the word lol

better yet, scrap the need for a reserve like them swedes and aussies

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Really, Pencil? Please expound. Lest you all forget, taxes can be raised too, they don't only go down.<!-/Quote-!>

whats that got to do with inflation? raising taxes doesn't contract monies. or does the above comment relate to something other then my last comment?

wow, such heated arguments. makes me wanna get the popcorn and just read along.

I say quite the killing terrorist war and come home. I don't think we will be able to kill every terrorist
unconventional wars are like impossible to win
either that or find more ways to get funds
like for every war flick the US gets x% of the revenue

Spoiler:


To bad 2012 will happen first ;)

Right. Just like Y2K and that day that religeous nut kept rambling on about to happen in April(later postponed to October).

I think everyone is overlooking the real danger in today's economy- the Chinese Housing Bubble.

Good eye on you tom.

This more threatens Australia because your currency is becoming ever more entwined with that of China and Japan.

The investment fad that for the last decade to protect US investment portfolio's has been emerging markets, like India and China. I'm not surprised that that you as an Aussie would be well aware of such developments.

I respect all of you as good players on simcountry, but your views on economics both macro and micro, your views on monetary policy and fiscal policy, your views on the banking system, political science specifically global politics is a load of @@@@. Only one person gave an okay answer and it was mediocre at best. The U.S as the global economic and military superpower is assured. I'm not going to explain myself, because you need only read some books on economics, geography, history, finance, science and weekly economic reports. If you do this than I need not explain myself and you will know the answer.

Ha! everyone knows it is a conspiracy that started with the Federal Reserve, which is neither federal nor a reserve, and they were even manipulated by the Tri-Lateralists and the Bilderburgers before they were taken over by the Illuminati. The U.N. and the Freemasons masterminded the post-19th century globalization and currency manipulation, using Skull and Bones as a training facility, the Bohemian Grove as a recruitment center, and the CIA and KGB (who are both run by the FBI) as enforcers.
Did I miss anybody? No, Jack Daniel says I pretty much covered it. Well, the only ones I can tell you about, anyway...

Lol

The US as a global power is in it's sunset years. Once oil production sharply declines, it's military adventures will be over. The US developed South Vietnam's military in a similar fashion to their own, but once they pulled out, S. Vietnam rapidly lost - in part due to being unable to sustain the high tech, oil intensive structure of their forces. Many at the time thought the US would never leave, as the largest military base outside the US was in Cam Ranh Bay. And I think "peak oil" will be coming sooner than any official predictions. All of the OPEC countries have had the exact or nearly exact estimates of reserves for over two decades - despite increasing pumping rates.

The US economy is also tied too closely to oil, with few if any provisions to remedy the situation. (What little of the US economy that actually exists. Most of the industry is gone.) Other countries have heavily taxed oil, the US would hav

LOL, the us has enough energy in the ground right here at home to last 250 years, natural gas, and other types of energy.

Unfortunately, most of the US industry isn't geared for natural gas, but oil. We still have plenty of coal too. But it's going to be a major undertaking to convert back. And neither have the same benefits as cheap oil.

I'm interested in the 250 year comment. Is that based on current consumption of all energy? Or did they extrapolate the way US energy demands are increasing? 283.9 trillion cubic feet of gas sounds like a lot - about a 1000 year supply at current/recent consumption levels. But current consumption of natural gas, shale gas, and plant liquids would stay nowhere near the current consumption levels.

And that is of course, if we can trust the estimates. As with Oil reserves staying the same in so many oil exporting companies for years, our reported energy reserves have constantly increased.

But, with the high price of conversion home heating systems and water heating systems - that's going to put

the US will always be a force to reckon with due to our large natural resources arable land and population among other things though I would expect in the event of a large decline in global influence the US would revert to isolationist policies and people would not experiance very good incomes and employment but short of a crazy invasion by a country we will remain strong we have more guns then anyone just in the hands of private citizens so any countries attempting an invasion would be hard pressed id reckon it would have to be a joint operation conducted most likely by the Canadians and Mexicans as the Chinese don't have enough boats to bring there stick wielding clay soldiers over here as all there boats would be busy shipping there soldiers back in body bags

With intelligence fast becoming the major weapon of any warfare, I'm afraid the Americans are virtually un-armed :P

Why would the Chinese need boats? Wouldn't they simply just ferry soldiers into Venezuela, and come up by land.? They are already deepening economic ties to this country - especially since it's oil reserves are expected to be about twice that of the US. And those Iranian missile bases planned there would provide some cover wouldn't they?

Yes, the United States has a lot of firearms. We did in the Korean conflict as well. Without US development of nuclear artillery shells and tank rounds there would have been no truce, and it would have led to a rapid defeat for US forces. Ridgeway was holding his own, but the addition of another 9 Chinese Army groups would have had the US hoping for a Dunkirk like miracle.

And if the oil goes, so does all the manufacturing etc that depends on it. Our stick wielding soldiers vs their stick wielding soldiers is a no-win situation.

the Chinese are not as well trained as American troops and their navy stands no chance and I'm hopeful that our generals would not be so stupid to allow any large gathering of Chinese troops in the Americas so yes you require boats to get across the Pacific ocean

and crafty that deserves a lol though we have smart people hence the largest producer of millionaires in the world our education system is simply not up to par which is depressing considering the ammount we spend on military 40% of all the worlds military spending yah China wouldn't stand a chance especially since many other developed country's would undoubtedly come in on our side north Korea doesn't count....if Korea was in America China wouldn't even consider fighting against America they only managed to "win" because they are right next to it and just send waves of human soldiers

and yes to ferry troops you need boats and by default a proper Navy which the US is the only blue water navy and the Pacific is bluewater

Point to you Gunther. Until China develops more military transport, or goes the German route and tries to enlist the Latin American countries into their cause.

Let us just return on topic here for a second:

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Anyone want to make a bet on when US goes bankrupt?<!-/Quote-!>

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I am betting that if Obama wins it will be around the 3rd year of his presidency... so around 2011-2012.<!-/Quote-!>

2011 belongs in the past, along with almost half of 2012 and still - still - there's no signal of bankruptcy for the US at hand. Amazing!

haha you've been waiting for that