Friday
Jan072011
Max Keiser 2011: Year of the Big U.S. Default?
Video - Max & Stacy - Jan. 5, 2011
Clip runs 90 seconds.
Discussion of debt ceiling and potential U.S. downgrade, by Moody's presumably, and default. We've discussed it many time here before - Keiser is being hyperbolic - default is not possible when you're printing the global reserve currency, but a AAA downgrade is not out of the realm of possibilities, especially given Moody's reaction to the irresponsible extension of the Bush tax cuts, that were not offset by any spending cuts.
That's how to show fiscal responsibility, Congress. Great work.
Jan 7, 2011 at 1:39 AM
Reader Comments (10)
http://opinionator.blogs.nytimes.com/2011/01/04/friends-with-benefits/?src=tptw
http://www.nakedcapitalism.com/2011/01/jp-morgan-markets-its-latest-doomsday-machine-or-why-repo-may-blow-up-the-financial-system-again.html
http://dailybail.com/home/moodys-threatens-to-cut-us-aaa-rating-on-tax-package.html
http://dailybail.com/home/the-us-bails-out-failed-industries-while-china-buys-the-rare.html
http://dailybail.com/home/sp-warns-on-us-aaa-rating-follow-recommendations-of-deficit.html
I am writing in response to your request for an estimate by the Treasury Department of when the statutory debt limit will be reached, and for a description of the consequences of default by the United States.
Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses and could lead to the loss of millions of American jobs. Even a very short-term or limited default would have catastrophic economic consequences that would last for decades. Failure to increase the limit would be deeply irresponsible. For these reasons, I am requesting that Congress act to increase the limit early this year, well before the threat of default becomes imminent.
Treasury would prefer not to have to engage again in any of these extraordinary measures [suspension of the issuance of certain types of government debt and government investment vehicles]. If we are forced to do so again, these measures could delay the date by which the limit is reached by several weeks. Once these steps have been taken, no remaining legal and prudent measures would be available to create additional headroom under the debt limit, and the United States would begin to default on its obligations.
I'm not inclined to believe anything Timmy Geithner says, much less an Obama aid. I'm of the opinion that they are trying to scare the living shit out of us to get what they want - - an increase in the debt limit.
Now here's a thought: Why don't our politicians quit spending money on stupid government giveaways of taxpayer assets? Oh, because the corporate interests will get pissed and quit giving campaign bribes? Well then, why don't we fund the elections with taxpayer dollars in the first place. It'd cost just $5 per taxpayer per year and would save us hundreds of times that amount!
Or, why don't we increase taxes on those making over $250K per year? Oh, because (again) it is the Fat Cats that are funding the elections? Repeat answer to #1 above.
We have a corrupt political system and the same thing is happening to our country as would occur if my company CEOs were corrupt and taking money on the side to give away corp[orate assets. Nothing - absolutely NOTHING - is going to change until we get public funding of campaigns.
Jack Lohman
http://MoneyedPoliticians.net
@jack....same to you...it's been awhile...