When countries are no longer able to support the US’s spending or no longer want to, what will happen?
interdependent globalized world asked:
When countries reallocate their money towards their own stimulus projects and no longer are able or willing to buy Treasury Bonds to support US spending, what will happen?
What will happen if imports into the US become much more limited after this happens?
I see only disaster, what do you believe will happen?
Question written on March 14, 2009
I think, again, this is my opinion, think that this has quite a high probability of happening either this year or next year.
Please remember, 2/3 of the US economy, the GDP, runs on consumer and government spending, it is completely unsustainable.
I do believe the US economy is in for some type of major crash in the future.
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Filed Under Politics |
Tagged With Economy, Probability, Treasury Bonds
Comments
7 Responses to “When countries are no longer able to support the US’s spending or no longer want to, what will happen?”
The U.S will finally have to get serious.
It will crash. That’s why Hillary went to China and begged them to buy more worthless treasury bonds. That’s why Hillary was playing nice when the surveillance incident occurred too.
We would be totally screwed. We have developed a lifestyle that depends on going further and further into debt. Ronald Reagan made us feel ‘good about America’ by turning us from the world’s largest creditor nation to the largest debtor nation. We knew years ago that this was not sustainable. But it was like an addiction, we lied to ourselves to keep it up as long as we could.
But the good thing is that, like the car companies, the US is ‘too big to fail’. Our creditors can’t afford to let us fail because they’ll never get back the money they’ve invested already! So, if we show signs of getting on the wagon and cleaning up our act, they’ll lend us more to keep going. That’s the hope anyway. 8^)
Eminent domain to China, they are already calling our bluff, demanding proof we can repay.
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Sorry just seeing if my computer could type Chinese yet
Obama’s rainbow wot have a pot of gold =(
I fear that we will find out all too soon. Rumors are that China is getting concerned about the value of the bonds it purchased in the last few years.
The fear is that when the payments come due for all of these massive spending bills, the American economy (i.e. the taxpayer) will not be able to foot the bill. When that happens the government will just crank up the printing press and whip out more money to pay the bill. This may cover the payments, but it will devalue the American dollar a very large amount and make our money worth a lot less.
Imports will certainly decrease because our money is not worth enough to actually buy something!
While I do not believe that it will be a hugh disaster as some believe, but I think that it will happen in the next few years and the it will be a painful experience for us all.
You become the United States of China.