Will the USA default?

[imdying]

We've had our turn, now it's theirs.

I think that is about right.

The Greeks, Romans, English, French, America, they've all had a crack. India, China, they'll both get their turn eventually... but they'll fuck it up too.

[Indiana_Jones]

I think that is about right.

The Greeks, Romans, English, French, America, they've all had a crack. India, China, they'll both get their turn eventually... but they'll fuck it up too.

Empires rise and fall

-Indy

[Oblivion]

The US will most definitely fall. It might not be within the next few days. But it will happen. And when it does, all the money that is owed to China, will be claimed in the form of authority over the Americans. The only reason that China is doing so well financially, ( $9 trillion surplus atm ) is because they maximize output for the sake of Human Rights. Also, a vast majority of the people in China are living on levels of income that would be declared poverty in the western world. I just hope that New Zealand can clear debt fast enough before China takes over. I can't imagine surviving without non restricted internet and Free speech......

I dun wanna learn mandarin. ( I wanna eat them )

[racefactory]

Well said. All empires rise and fall, but I just wish it wasn't in my lifetime that it will be China's turn, that's all. When you've actually lived in the country, speaking the language with them and you understand exactly how the people's minds tick; it's only then that the thought can truly scare you shitless.

If it comes to taking up arms to defend this country from them, I'll fight to the death. As far as I'm concerned, life is over once the creditors come knocking and our sovereignty is handed into their jaws.

[Brett]

There hasn't been enough gold to cover the world's finances for a long time now. The reality is that there has to be enough "real" money that anyone can go to their bank and withdraw their balance in cash. This is also no longer possible due to the credit society we run. In the news in recent years there have been runs on banks as people panic and demand their money in cash after hearing the bank is in trouble leading to the Government having to chip in and bail the bank out before it goes under. In NZ it happened with South Canterbury Finance.

In short, you borrow $300k for a house mortgage at 7%. Long before you ever pay that back, the bank lends that same $300k plus the balance of the interest income out at an other 7% and so on. So while the actual monies available to the bank at any one time is less than the original $300k, the value of the debtor's ledger is now $600K plus interest. The bank itself, though is now in debt as it has borrowed the extra from another bank at 3% interest in order to pay out the mortgages to the vendor of the houses. This is a simplified explanation, of course.

If you then default on your mortgage, the bank seizes your house and sells it to cover the debt. What happened in the US was that the banks had lent 120% of the value of the house, counting on capital increases to catch up the difference. (Greed and competitive manuevering to gain customers). When that failed, (the interest rates rose and the people couldn't afford the repayments leading to bankruptcy), the bank was left with a house worth 75%, (or less!), the value of the debt which meant the bank was in danger of defaulting on its own borrowings. The ensuing glut of mortgagee sales collapsed the housing market leaving houses worth 30% or less than the mortgage over them. People who paid $450k were forced to sell their home for under $200k leaving them still owing nearly $200k+ with no assets.

The US governement had no choice but to step in and rescue the banks or see the whole US economy collapse. They printed billions of dollars of paper money which, of course, devalued the USD and on top of that had to cut the interest rates to zero to try to encourage people to spend and book up more credit to restore the book balance of the banks. As predicted this was a short term "fix" that was bound to backfire down the track and it has. Now the US Government, having taken on the debts of the people and the banks, is facing bankruptcy itself.

Who's to blame? Everyone who wanted to buy/spend more than they could realistically afford, ie: the consumer booking up too much debt, then the banks for being loose and greedy counting on the economic boom to cover their irresponsible lending, and finally the Governement for taking on debt it couldn't afford and hadn't budgeted for in an attempt to bail everyone out and keep the economy afloat.

Amusing isn't it...sort of a much grander scheme of what Stephen Versalko was doing to his ASB investors. There is a name for this kind of fraud, but can't remember what it is.

[Indiana_Jones]

Well said. All empires rise and fall, but I just wish it wasn't in my lifetime that it will be China's turn, that's all. When you've actually lived in the country, and you understand exactly how the people's minds tick, it's only then that the thought can truly scare you shitless.

If it comes to taking up arms to defend this country from them, I'll fight to the death. As far as I'm concerned, life is over once the creditors come knocking and we are handed into their jaws.

I've never been there, but the thought of those goose stepping Nazi gooks running the show scares the shit out of me.

I wonder what would happen if countries refused to pay. I dare say they'd invade a smaller one, but what about the US. I'd start digging a bunker lol.

-Indy

[racefactory]

The only comforting thing is that historically it's never been in their nature to roam forth outside their borders and conquer like our western forefathers have. At least that's what I keep reminding myself of...

[Indiana_Jones]

The only comforting thing is that historically it's never been in their nature to roam forth outside their borders and conquer like our western forefathers have. At least that's what I keep reminding myself of...

Yea, but they didn't have jet fighters, subs and nukes back then lol

but then again they might be scared of the Mongals still lol

-Indy

[imdying]

It's all good... we had a good run and did lots of cool shite. The earth isn't ours in any case... it doesn't belong to you, me, the Maori, the USA, and not even China, even if they 'own' most of it in the future.

It'll still be spinning long after all of the humans are dead

[Usarka]

It'll still be spinning long after all of the humans are dead

Rotation of Earth Plunges Entire North American Continent Into Darkness

[Vacquer0]

Oh, fuck. Anybody have a spare room for rent, and a bike. Fridge full of cold ones would be a plus.

[Latte]

Rotation of Earth Plunges Entire North American Continent Into Darkness

Oh noes , it's dark at 5:45pm in the middle of winter....... the horror

[Oblivion]

Oh noes , it's dark at 5:45pm in the middle of winter....... the horror

Come to Antarctica. I know you would enjoy the 6 month long riding season. Just remember to bring your leathers.

[Swoop]

Yea, but they didn't have jet fighters, subs and nukes back then

There is only one underground sub pen being built at the moment. Their subs are operated by a bunch of people who do not deploy regularly or know how to get the "performance" from their equipment. Basically their subs are a joke (at the moment).

The "combined base" that was going to happen in Pakistan looks like it has fallen over already...

The Shi Lang (Ex USSR Varyag) carrier is still being worked on and sea trials will be a way off yet, although the naval aviation school is up and running.

As for jet engines, they still haven't stolen the technology or reverse-engineered the ability to produce reliable high performance fighter engines.

[Indiana_Jones]

There is only one underground sub pen being built at the moment. Their subs are operated by a bunch of people who do not deploy regularly or know how to get the "performance" from their equipment. Basically their subs are a joke (at the moment).

The "combined base" that was going to happen in Pakistan looks like it has fallen over already...

The Shi Lang (Ex USSR Varyag) carrier is still being worked on and sea trials will be a way off yet, although the naval aviation school is up and running.

As for jet engines, they still haven't stolen the technology or reverse-engineered the ability to produce reliable high performance fighter engines.

Guess they'll use the Russian tactic and just throw endless grunts at the enemy until you win lol

But saying that the Russians did have some very good weapons during the great patriotic war

-Indy