That's pretty interesting.
My first thought was that these guys can spend almost as fast as my ex wife 
Yes but it's all covered by 'macroeconomics' apparently, which is different to real economics.
So once the number gets big, it doesn't matter how big it gets really, because it will never be repaid.
They just wait until it gets unbelievably big and then they say that it's obvious they can never repay it, and so they don't.
I have a feeling it's getting close to that point now.
Select to expand quotepweedas said..
Yes but it's all covered by 'macroeconomics' apparently, which is different to real economics.
So once the number gets big, it doesn't matter how big it gets really, because it will never be repaid.
They just wait until it gets unbelievably big and then they say that it's obvious they can never repay it, and so they don't.
I have a feeling it's getting close to that point now.
So what happens when it all goes pear shaped then?
The U.S. (whatever happened to the 'A'?) government does not have cross-default clauses in its debt, which is part of the "exorbitant privilege" the United States has as issuer of the world's reserve (and accounting) currency, AKA "Hold" currency. When other countries default on a bond (think Russia 1998) the cross-default clauses mean they automatically default on ALL bonds - disaster. The US will only default on one bond at a time.
In theory they can keep on lending themselves as much money as they need to.
Numbers aren't real. They are an abstract concept.
Select to expand quoteevlPanda said..
Numbers aren't real. They are an abstract concept.
Of what?
I cant see how all this works.
Numbers are really set theory. "Something somethings". A Grouping mechanism.
The conspiracy theorist might be able to better explain how it's all made up. Federal reserve et al. It's actually true (before it gets emotional).
Fun fact: There are infinitely more numbers between whole numbers than there are whole numbers (like 1,7, 100 etc.)
Select to expand quoteevlPanda said..
Numbers are really set theory. "Something somethings". A Grouping mechanism.
The conspiracy theorist might be able to better explain how it's all made up. Federal reserve et al. It's actually true (before it gets emotional).
Fun fact: There are infinitely more numbers between whole numbers than there are whole numbers (like 1,7, 100 etc.)
Cool, but why didnt they just raise the ceiling before rather than freaking everyone out or was that the plan from the start?
Tea Party, right wing Republicans are holding everyone hostage. They want to reduce the debt at all costs. Which is nice in theory but when it means shutting down the government to do so it's bat-**** insane. Democracy in action.
And remember they can raise the debt ceiling, put out bonds and raise as much money as they like. ****, look at Japan.
Against all logic Japan has crippling deflation.
This whole charade, which costs hundreds(?) of thousands of Americans their wages, cost the American economy so many hundreds of millions or billions, and made the country look dumb in the eyes of the world, is all down to the Tea Party element of the Repulicans.
The Tea Party is essentially all the Ray Hadleys and Alan Joneses of the world gathered together crying 'taxed enough already', 'curb government waste' etc. While also bringing other distasteful views along for the ride -sexist, racism, religion, climate change denial etc. They are particularly angry in the US because they have a black president, and most of them are southerners.
Cory St Bernardi, the erstwhile olympic medallist turned pollie who recently made headlines saying that same sex marriage is one short step away from legal bestiality, is trying his hardest to import the Tea Party to australia. Along with other brands of hard right protectionist religious lunacy.www.theglobalmail.org
They have a foothold, in the form of cando.
www.cando.org.au/
Patron is David Flint, who may or may not be Alan Jones's lover.
www.cando.org.au/about/team-cando
Were they competent in any way shape or form, they would be as dangerous for this country as the US tea party. Luckily for us, they're not.
Select to expand quoteevlPanda said..
...look at Japan.
Against all logic Japan has crippling deflation.
Yes. Look at Japan.
It's an excellent example of what not to do.
Up to 20 years ago they were rich enough to run around the world buying up anything and everything that had a 'for sale' sign on it,
including half of outr east coast properties, all on borrowed money.
Then they went broke.
They are still paying for it now after 20 years of hard slog.
They had to sell up most of what they bought and run back home.
Japan is still nowhere near as well off as it was 20 years ago.
^ I don't think the US has any other choice, right now, but to borrow more.
Shut down government? Really?
No more pensions.
No more military.
No more police force.
No more fire brigade.
Close all schools.
Goodbye public transport.
the list goes on, and on, and on...
Or borrow more money.
I agree it's either spending too much (on wars???), or not taking in enough tax. It cuts both ways equally but you rarely hear the latter because communism.
Nice little article from The Atlantic:
www.theatlantic.com/business/archive/2011/04/the-us-debt-ceiling-a-historical-look/238061/
you used to have to have gold worth the amount of money printed (fort knox) in those times it was a pretty well run ship. But now you dont and this obviously lets them keep printing money..... too much debt start the printer.... inflation out of control stop the printer...pretty much it remember monopoly? same thing but with real peoples living/livelehood/ at stake
Panda... this will only upset you.
