1. Welcome to Baptist Board, a friendly forum to discuss the Baptist Faith in a friendly surrounding.

    Your voice is missing! You will need to register to get access to all the features that our community has to offer.

    We hope to see you as a part of our community soon and God Bless!

What's the worse case scenario if we don't raise the debt limit?

Discussion in 'Political Debate & Discussion' started by Skandelon, Jul 21, 2011.

Thread Status:
Not open for further replies.
  1. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    Yes, and only YOU have the RIGHT numbers...

    How ridiculous.

    Yes it is possible to pay off the debt, and balance the budget. We certainly will not default. Before the government did that, they would, with one click of the mouse, pay off the debt, and instantly devalue your retirement fund (if it is in US dollars, anyway). Its actually quite easy.
     
  2. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    Simply hilarious! :laugh:
     
  3. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    #83 freeatlast, Jul 23, 2011
    Last edited by a moderator: Jul 23, 2011
  4. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    Its true. Apparently you are not familiar with the way paper money works, and a little concept called quantitative easing. The Fed can increase the sum total of available dollars as much as they wish. They could literally, with a click of the mouse, pay off our national debt. It would just devalue the dollar tremendously ( a GREAT thing for those with home mortgages, car loans, and so on).

    So again, we will not default. In fact, the idea of a default is completely outside the realm of possibilities. We will either get our act together, and balance the budget, or in effect "cheat" by printing more money.
     
  5. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    :laugh:
    Simply hilarious!
     
  6. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    That's a great argument. Mind of a steel trap you have...what are you, 12? I really find it hard to believe that a believer in Christ could act so immaturely.
     
  7. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0

    Call it what you want the debt cannot be fixed. We will default in the near future and lose just about everything we have because of a devalued dollar.
     
  8. billwald

    billwald New Member

    Joined:
    Jun 28, 2000
    Messages:
    11,414
    Likes Received:
    2
    >It would just devalue the dollar tremendously ( a GREAT thing for those with home mortgages, car loans, and so on).

    That's why you gots to differentiate between money inflation and price inflation. We will get price inflation. The cost of consumer goods will skyrocket but they will get their mortgage payments.
     
  9. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    Yeah. Your not understanding me. When the value of the dollar decreases, and prices of consumer goods skyrocket, EVERYTHING skyrockets, because the value of the dollar goes down. So for instance, when the Peso plummeted, and a loaf of bread cost a million pesos, those who were still working were making 50 million pesos per week... So as the value of the dollar plummets, and wages (though they will not keep up), likewise skyrocket, it can actually get to the point where you can pay off your mortgage or car payment with one weeks salary. This is particularly true if you are invested in a different commodity. like gold. Suddenly you are able to pay off your home loan, with one ounce of gold...
     
  10. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    You might as well be telling us the moon is made of green cheese. You have nothing to back up this statement with, except a doomsday mentality.
     
  11. righteousdude2

    righteousdude2 Well-Known Member
    Site Supporter

    Joined:
    Oct 14, 2007
    Messages:
    11,154
    Likes Received:
    242
    Faith:
    Baptist
    We Will ONLY Know IF.....

    ....it comes to pass! Let it happen and let's see if the world ends, of if we just have one more reason to not trust what our elected leaders tell us!
     
  12. rbell

    rbell Active Member

    Joined:
    Jan 16, 2006
    Messages:
    11,103
    Likes Received:
    0
    SS is teetering on insolvency. Your "facts" are wrong.

    Government IOU's do not equal "self-sustained."

    Furthermore, we are approching a 1:1 ratio (contributors to beneficiearies) fairly quicly. Furthermore, life expectancies are now such that many will receive SS for decades (something FDR didn't have to factor in).

    You couldn't be more wrong about Social (in)Security, a.k.a., "Legalized Ponzi Scheme," a.k.a., "Congress' secret cookie jar," a.k.a., "My kids likely won't see a dime of this."
     
  13. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0

    Call it what you like this is all going to come crashing down. No amount of shuffling of number will stp that as the debt cannot be fixed.
     
  14. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0

    SS is not the problem as it is pay as you go and there is 2.5 in bonds in the system even if they are held by a government that is broke. The problem is the over spending of funds that are not there and since it has went on for so long it is now past correcting. We will default in the near future.
     
  15. Havensdad

    Havensdad New Member

    Joined:
    Jun 14, 2007
    Messages:
    3,382
    Likes Received:
    0
    Yep, and there are little green men on Mars that are going to take over. Make up whatever kind of fantasy you like to justify your political positions, the debt CAN and SHOULD be fixed, as I and others on here have clearly shown.
     
  16. poncho

    poncho Well-Known Member

    Joined:
    Mar 30, 2004
    Messages:
    19,657
    Likes Received:
    128
    Actually Havensdad is right. We could pay off our debt by printing up more money but that would devalue the dollar even more. Not that the dollar has much value anymore.

    The value (purchasing power) of the dollar has been devalued 95 - 97% since the Federal Reserve system was created in 1913. So, there isn't much wiggle room left for further devaluation.

    Look at it this way, what cost 20 dollars in 1913 now costs around 450 dollars! This is the effect of creating money from nothing.

    QE2, what happened to the money?

    In effect 600 billion dollars plus or minus a few billion was taken out of our pockets and handed to foreign banks where it now sits collecting interest. How does this help our economy? It doesn't!

    Setting Things Right

    Whatever is responsible for causing the local credit crunch, trillions of dollars thrown at Wall Street by Congress and the Fed haven’t fixed the problem. It may be time for local governments to take matters into their own hands. While we wait for federal lawmakers to get it right, local credit markets can be revitalized by establishing state-owned banks, on the model of the Bank of North Dakota (BND). The BND services the liquidity needs of local banks and keeps credit flowing in the state. For more information, see here and here.

    Concerning the gaping federal deficit, Congressman Ron Paul has an excellent idea: have the Fed simply write off the federal securities purchased with funds created in its quantitative easing programs. No creditors would be harmed, since the money was generated out of thin air with a computer keystroke in the first place. The government would just be canceling a debt to itself and saving the interest.

    As for “quantitative easing,” if the intent is to stimulate the economy, the money needs to go directly into the purchase of goods and services, stimulating “demand.” If it goes onto the balance sheets of banks, it may stop there or go into speculation rather than local lending — as is happening now. Money that goes directly to the government, on the other hand, will be spent on goods and services in the real economy, creating much-needed jobs, generating demand, and rebuilding the tax base. To make sure the money gets there, the 1935 law forbidding the Fed to buy Treasuries directly from the Treasury needs to be repealed.

    SOURCE

    Better yet, abolish the Federal Reserve system along with it's unconstitutional enforcment arm known as the IRS!
     
    #96 poncho, Jul 24, 2011
    Last edited by a moderator: Jul 24, 2011
  17. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    Never been there so I will take your word for it, but the debt cannot be fixed and we will default and fall from what we are.
     
  18. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    No the debt cannot be fixed. Printing money to pay the debt is like saving someone's leg but they die of gangrene. So anyone who proposes that the debt can be fixed is in la la land. The so called cure will kill the patient. So the debt cannot be fixed and we will default and lose just about everything we have in the near future.
     
  19. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
  20. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    No the debt has never went down. The debt as a fraction to GDP has went down but not the debt.
    The debt is too great to fix and we will go under as a nation.
    http://cedarcomm.com/~stevelm1/USDebt.png
     
Thread Status:
Not open for further replies.
Loading...