Faber Predicts America Will Go Bankrupt
 

http://www.bloomberg.com/avp/avp.htm...aa_X2YsZVk.asf

Forget Alan Rickman. This guy should be the baddie in the next die hard movie. Look at the way he talks!! :1orglaugh

I guess we can only hope that we deflate.. We should, as the guy said in many areas, but again... inflation in the wrong areas would be very bad.

Awesome commentary there but you missed the prime issue.... would he or would he not make a good baddie for the next die hard movie?????

Also whats the difference between current account, trade and budget deficits? I need to ask a smart ass like you as googling didnt help me.

Of course it will. You can't sustain such an empire based on a currency backed by NOTHING with insane inflation and your debt in the trillians of dollars, growing by the day with no end in site.

America is doomed. Be it now or 50 years, it's gonna fall. You just can't keep up the current way of doing things.

Then again........ I cant see Obama growing America's debt more.

Most people believe Obama will win this election.

Have you ever seen a black person able to handle money well?

Isn't it cool to know your Country is fucked too?

America is fine, it will be fine... it already is bankrupt on the fake money system and has been, however since nobody can call/collect debt in any country, well everyone is equally fucked.

We will deflate, some things will inflate, but not near as bad in America as it will be in most other Countries. We have far more room to fall than almost any other Country. It's a bitch that we 'actually' do produce our own shit too, other than gay toys, trash for homes, and general bullshit nobody needs...

Sooner or later Japan and China will decide enoughs enough and if things look like theyre starting to tank they may well sell their bonds (almost $3 trillion in total between them). Then what will happen to the US dollar?

Lets say they did it, what would you get 3 dollars to 1 euro?

All china needs is for yuan to have appreciated significantly against the dollar.

They won't... I'm not going to go into the long explication of why. If they did this, they would go bankrupt too and spark excessive inflation.

Our falling dollar and that debt, allows china to compete a bit more and puts our factories on a bit more playing field with them.

If they did, we would call our debt cards too and just like we did with others, someone would pay off our debt.

oh my god :1orglaugh

We are not so bad off. Bad, but long term I don't think we will have such a problem as many other European countries.

Iceland just fell down. I see American falling as well. China will pick us off, dust us off and we will be forever in their debt even more than we are now at 1.4 TRILLIAN dollars.

China will then emerge as the new world superpower and the USA will take a backseat. The wealthy and the poor will become further apart and the middle class may be close to being extinct. This is the beginning of that.

There really is no other way for this to end.

If China trades its dollars for a stronger currency, for sure the USA will fall HARD. Then they can pick us up and more or less own us.

What are other countries currency backed up with?

You clearly don't understand what this debt is. If they called our card on it, it would rocket our interest rates, and only slow us down a little. And either way, if we fall, they fall....

This isn't the end of the U.S. - our exact current problems couldn't bring us down if it happened 10 more times.

If china changes to a stronger currency, it would sky rock inflation inside the country, like no other inflation the world has seen. Otherwise, they would need to be as strong or stronger, to the global currency they would change to, and before that happened they would need to be a member of the U.N.

Do you understand our debt? We are the collateral. If the loan is called and if we do not default on our loans then the taxpayer can be taxed 100% until the debt is paid. We would be at war before that.

We have yet to see the inflation on this problem yet.

In this case, we aren't the collateral, these are bonds on money. And they can't collect from our Taxes. If they call these bonds, the value of the bond drops. If they put enough on the market (like in 06 and 07) someone else buys them.

It is not a 1 to 1 thing, on our tax system at all...

grrrr....

Sell to who? Do you know someone looking to pick up that much of the US debt?
And when we don't buy their cheap goods how will the defend themselves against their own angry citizens who left their farms for the promise of a good city life and now have no jobs?

Luckily we have mutually assured descruction and nobody can do anything about it.

money doesn't actually exist. It's made up, we're all just trading "points" in a game.

I think QuickBuck.com is winning! :)

IMF disagrees, warns we're on the brink of meltdown....



"If China trades its dollars for a stronger currency, for sure the USA will fall HARD. Then they can pick us up and more or less own us."

China doesn't want a stronger currency. The global community has been fighting them to revalue their currency because they have been artificially suppressing its value. If they went to a stronger currency their trade debt from us would decimate fast, and they couldn't hold that over our head. They would also have to start competing with our, and other countries labor forces.


"If they did, we would call our debt cards too and just like we did with others, someone would pay off our debt. "

Nah, most countries are struggling to survive now, let alone buy our shit. We don't even want our shit, hence the bailout. Most of the countries that owe us money are 3rd world, so they could care less anyways.
Top that off with the other countries moving away from the dollar as the reserve currency.

Some good articles.. As I have said, not sure if in this post. If we go down, they go down, we all go down.. And if that happens, deflation will happen along with some inflation. The U.S. does need to be forced into not spending like it does, but not just us, most Countries.

Countries need to stop buying other bad debt, with fake debt, over and over again.. people bought bad debt today, so it isn't slowing down much. It's why no real value goes in or out, and fake value of markets, money, costs, inflation, ect happens.. it needs to die.

That article about China tells you why they can't change currency, it's not a thing that they wont, they can't. Putting them on our labor force would crush them and would create major inflation for them.

Now if they stop being a communist country, be very worried.

China cant just cut our trade, without our trade China is f'ed. If they devalue the dollar, the trade dollars they have are worth crap on exchange, and with our loss of trade, it would just be a bad situation for them all around. Let alone the labor force match.


Gota remember, countries bark just like dictators, the media/papers need crap to spew, and people by into it based on fear.

And plenty of fear to go around, don't get me wrong... but this market, credit, crap.. it will calm down, it's going to get worse, jobs will be lost, credit is going to get tight, interest rates will go up, and I'm sure inflation will happen. But things will change too... and things will get better, again.