Will the USA default?

[Edbear]

Seems the Western world is going down the gurgler financially and the Eastern world is collapsing into civil war and terrorism. Peaceful and stable countries are being hit by natural disasters of all kinds and the wind is cold in my street.

The US has until next month to raise money or default and the only way is to take on more borrowing putting the country at risk of owing more than it's worth. The West has been living beyond its means for a very long time and the Piper wants paying, the chickens have all come home to roost and not enough of the eggs layed have hatched.

Europe is scared of the consequences of Italy defaulting as it could lead to the collapse of Europe's economy. So the most powerful nation on Earth, seen as the backstop for everything, is broke! I believe they will pass the legislation to borrow more, but obviously that would only delay the inevitable for a short while. What would happen if the US defaulted?

Russia, China, Hong Kong and Korea have been strangely quiet over the financial issues facing the West, are they playing a waiting game?

[pzkpfw]

Did you mean Greece? Or is Italy going down too?

[Edbear]

Did you mean Greece? Or is Italy going down too?

Italy is next in line. Was on the news yesterday and today.

[Indiana_Jones]

.........I live by the river!

OOO OOO OOOWwwwwwwh!!!!

-Indy

[Banditbandit]

Hmm .. interestng .. who is the US going to borrow from? The implications are that countries are no longer independent and successful entities, but are reliant on the global corporations who hold all the money and dole it out as required .. the corporations are the ones with the real power .. and they can basically buy and sell countries ..

[Banditbandit]

"The west must perish ..."

[Edbear]

Hmm .. interestng .. who is the US going to borrow from? The implications are that countries are no longer independent and successful entities, but are reliant on the global corporations who hold all the money and dole it out as required .. the corporations are the ones with the real power .. and they can basically buy and sell countries ..

It's all down to the banks in the end, but they are getting nervous as they are leaving themselves vulnerable to default so naturally they are reluctant to bail out whole countries who are broke and can't pay their bills. Of course if they don't, the country goes bankrupt leaving them without income. It's the same as if you went broke in your business, owing a million dollars and asking the bank for another million to pay the first million, even though you can't earn enough to pay it back...

Meantime, you need to live, so you book up more debt to feed your family...

[Banditbandit]

It's all down to the banks in the end, but they are getting nervous as they are leaving themselves vulnerable to default so naturally they are reluctant to bail out whole countries who are broke and can't pay their bills. Of course if they don't, the country goes bankrupt leaving them without income. It's the same as if you went broke in your business, owing a million dollars and asking the bank for another million to pay the first million, even though you can't earn enough to pay it back...

Meantime, you need to live, so you book up more debt to feed your family...

Yes. But step outside the system for a moment and look at what it really is doing ...

[Edbear]

Yes. But step outside the system for a moment and look at what it really is doing ...

Imploding under its own weight of debt?

[racefactory]

What will the effects be if the USA defaults on August 2nd?

[Katman]

What will be the effects globally if the USA defaults on August 2nd?

Dunno, I imagine I'll still have a cone.

[superman]

What will be the effects globally if the USA defaults on August 2nd?

China shall be the new world power. UN shall cease to be important, and the world will become more influenced by Chinese culture than American. Sounds like a good thing to me. Better start learning Mandarin.

[EJK]

China is only matter of time.

[racefactory]

Already know it actually. Have you ever been to China? While we frown upon a lot of things America produces and does around the world, just the thought of China pushing it's influence on the world instead; that scares me shitless.

[Colapop]

The 'money' that is being spoken about is in reality only internet/digital money anyway isn't it? It's not like it's gold that can be held in your hand is it?