Senate vote to raise US debt ceiling to nine trillion dollar
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http://www.channelnewsasia.com/stories/afp_world_business/view/198263/1/.html
US is getting deeper and deeper into debts
Will it go bankrupt?
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If they keep going at this rate, sooner or later all of USA would be owned by the Chinese and the Indians and the Japanese.
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Seems like a depression coming...
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wow 9 trillion......whatever kinda interest rate are they even paying.even 1% interest per year=90 billion.....
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Quite scary right?Originally posted by Aveme:wow 9 trillion......whatever kinda interest rate are they even paying.even 1% interest per year=90 billion..... -
yeah really scary,given that these are in treasury notes backed by the US govt,i would think the interest for such notes are around 3.75-4+ % right?Originally posted by maggot:Quite scary right?
so yearly interest around 360 billion?
Us population is now at 298 million,so even if each citizen help out,each citizen will be forking out an average of $1200 per year -
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scary...
how can they repay?
omg...
alot of questions sia...?????????????????????????? -
Hmm,,,the US dollar should be crashing...
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Here is the current US National Debt figure clock
http://www.brillig.com/debt_clock/
Currently debt is $8.272 trillion...... -
well suppose if one day,US refuse to aknowledge this debt and refuse to pay up when asked to,what can the creditor country do?Or even if there is some world body that will force the US to aknowledge and pay up but US does not have the money,then the creditor country can take over parts of the US land?
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I think they will stop supplying goodsOriginally posted by Aveme:well suppose if one day,US refuse to aknowledge this debt and refuse to pay up when asked to,what can the creditor country do?Or even if there is some world body that will force the US to aknowledge and pay up but US does not have the money,then the creditor country can take over parts of the US land?
The dollar will be near worthless
I heard sometime soon the EURO can be used as a standard in oil trade that would weaken the dollar further -
Some say that was the reason why Iraq was invaded.Originally posted by maggot:I think they will stop supplying goods
The dollar will be near worthless
I heard sometime soon the EURO can be used as a standard in oil trade that would weaken the dollar further
It was all about Eur denominated oil money.
Seems like the same thing is happening to Iran now. -
The matter is will we get affected because of the plunge in the dollar?Originally posted by charlize:Some say that was the reason why Iraq was invaded.
It was all about Eur denominated oil money.
Seems like the same thing is happening to Iran now. -
it's probably time for the US to sell the biochemical weapons that they "found" in Iraq, and make use of the resources in Iraq
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Actually, if the US government charge a fifty cents tax per gallon of petrol, the deficit will be wiped out in a year. Please lah, over here we are pay fuel tax minimum fifty cents per litre and the tax goes up with the price of fuel.Originally posted by maggot:http://www.channelnewsasia.com/stories/afp_world_business/view/198263/1/.html
US is getting deeper and deeper into debts
Will it go bankrupt? -
Exchange rates are relative.Originally posted by maggot:The matter is will we get affected because of the plunge in the dollar?
One currency plunges implies the other will strengthen.
Affected? Definitely.
One example will be exports and imports, purchasing power etc.
I can't be bothered typing out some deep analysis like some of the rest.
Maybe they can enlighten you instead. -
the debt is a bargaining chip..."you dont listen to us we wont return you your money and you can't do anything about it"
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In other words...Originally posted by vito_corleone:the debt is a bargaining chip..."you dont listen to us we wont return you your money and you can't do anything about it"
Borrow money from people and hold them hostage with it. -
see..international diplomacy is interesting isnt it...
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The US already done that once in the early '70's, they were bankrupt.. and what they do.. they simply wiped their slate clean and hedge their currency from Gold to Oil. Their creditors could do nothing, and US absorbed all the exports and services into their national assets for free. It's in fact a robbery.Originally posted by Aveme:well suppose if one day,US refuse to aknowledge this debt and refuse to pay up when asked to,what can the creditor country do?Or even if there is some world body that will force the US to aknowledge and pay up but US does not have the money,then the creditor country can take over parts of the US land?
It was from then , that the US begin aggressively/militarily intervene control of all oil states. From coups, election rigs to assassinations in it's national interest. US interest is friend to no one. -
Singapore also got debt anot?
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wat if the world unites n turn against dem?
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actually a little inflation policy is always an appealing choice for politicians because it allows them to finance their spending sprees with a hidden tax and its a tax they need never vote on or defend to their constituents. To impose it they merely have to spend money, if they spend more money they can raise in visible taxes, they run a budget deficit and borrow money(sell bonds) to pay the government bills.Originally posted by maggot:http://www.channelnewsasia.com/stories/afp_world_business/view/198263/1/.html
US is getting deeper and deeper into debts
Will it go bankrupt?
So when the united states ran up a massive budget deficit like what happen in the 80's under regan administration, the central bank did what they knew the politicians wanted to do. They bought some of the debt on the open market paying for it's purchases with cash created out of thin air, this created an added demand which pushed up prices for treasury bonds and bills which is the same as lowering interest rates because when the price of bonds goes up their yields drop. Then as new money begins flushing through the economy driving up prices as more money chases the same quantity of goods you begin to have inflation.
In the end is all power play and manipuiation by the politicians to create a false sense of wealth and prosperity culminating in a raging stock market bull run all this just to increase their chances of re-election.
At this side of the world it means in the short term our stock market rally will also turn into a massive bull run.