So what happens when the debt can't be paid off?

[mike45]

The biggest problem the US has is, The Dollar is not backed by anything real.
This happen when we lost the gold standard.
The only thing keeping it alive is, it is still the currency used to trade crude oil world wide.
When the Russians and Chinese decide it is time for us (US) to fail, they will use their own currency.
That will be the day America is no more.

 

[roisigns]

From Jennifer Stewart, Ag Answers, Purdue University:

"A survey indicating that farmland values are expected to continue increasing is more good news for landowners but could also signal caution for buyers, an agricultural economist says.

The survey was conducted Feb. 15, 2012 at the winter meeting of the Indiana Chapter of Farm Managers and Rural Appraisers. The results come on the heels of a February 2012 issue of AgLetter in which the Federal Reserve Bank of Chicago indicated farmland values in Iowa, and parts of Indiana, Michigan, Wisconsin and Illinois have increased by 22 percent since early 2011. That is the largest annual increase since 1976.
...................According to the survey of 32 farm managers and rural appraisers from 25 Indiana counties, the average estimated price of farmland was $7,533 per acre, and all of the respondents indicated their estimated price was higher than the value in February 2011........."

 

[Hohn]

My grandfather paid $600 per acre and recently sold some for around $6500. The capital gains taxes were horrendous.

Welcome to being part of the "evil rich" GrandDad.

 

[OneShotFOGE]

The US debt can NOT be repaid. The only way to get more money to pay for our debts is buy taking loans from the Federal Reserve. The Federal Reserve is neither a Federal entity nor is it actually a reserve. It is a private company that loans out money at interest. So for every dollar they loan the government, more money is created by the interest that is accrued. That means more money is owed back than what actually exists. It is mathematically impossible to repay the loan. Debt = slavery and that is the goal of the Federal Reserve.

Couple that with Fractional Reserve Banking and the Derivatives Markets in the US Stock Exchange and you have a recipe for creating even more money.

The current state of the Union is reminiscent of the last days of the Roman Empire. We had Fiat Currency being printed as fast as possible, a current Colosseum in our reality TV and sports, and we are fighting wars for the sake of thumping our chest. We are at the end of an empire.

 

[mike45]

Everyone is looking for the government to fix this problem with a magic law or program. That always works doesn’t it?

Now do you remember when the USA would buy raw materials from around the world? We would then refine them and manufacture a finished product for ourselves.
Then if we had a surplus we would sell the extra back to the other countries for a nice profit. We were the economic engine of the entire world.
Kind of sounds like china and India now.

The fix is not going to be easy. The government is not the solution.
We as individuals are the only ones that can fix this problem. If everyone would stop buying things made in china, no matter the inconvenience the manufacturing sector would come back to the USA.
There are only two ways to create wealth. One way is to sell raw materials and the other is to manufacture those same raw materials and sell the finished product.

When the people of this country decide to get off their a*** we will come roaring back. When that happens we will have to get the EPA, FCC, USDA, FDA and all the rest of the wealth suckers of our backs by kicking the rotten @#$%^&*( out of Washington DC.

Are you with me?
I have been trying to not buy china made crap for 20 years. I drive my family nuts over it.
WAKE-UP AMERICA

The whole time I was typing this post I had GOD BLESS AMERICA playing in my ear.

 

[zippy23]

When we lose the ability to pay our debts is when we default, also if other countries decide not to lend us money because they dont think we would pay it back, that is another sign its about the end unless we get spending under control. Sure we could grow the economy, but think, we are 16 trillion in debt, we spend 1.65 trillion MORE than we bring in as a gov't. This means we would have to cut spending(our grow the economy by 1.65 trillion bucks just to break even, thats not even beginning to pay off our debt. The dems are going crazy over this sequester(they are still spending MORE than last year), there are no real cuts, its more spending, so look at how its going to go the next 4 years, we will be at least 22 trillion in debt, if we cut spending and break even and then cut another trillion in spending to go to pay off the 22 trillion in debt, it will take 22 years to do that. there is absolutely NO WAY this is going to happen, we are going faster towards destruction everyday with no one in washington who is actually trying to fix the problem. The real lesson is to prepare for what is to come.

 

[Survivalcookie]

We can be saved...but the shadow government does not want that...all they want is a OWO and Obama thinks he will be the king.
All it would take is to start tax companies that have moved their manufacturing over seas. Taxing anything that comes in from other countries so there is no big profits. We have to re-learn that we can only get strawberries in the summer and that we might only be able to have only one pair of american made shoes instead of 15 pairs made in China. It would mean many of us doing with out for awhile... The first microwave I bought in the 80's was almost 600 bucks, now I can get one for $.39.99.

 

[AtTheMurph]

Default is far more likely than unlimited printing of money.

The US is not Argentina. The dollar is so integrated into global finance that the Fed cannot inflate our debt away. It can reduce it, but it cannot pull an Argentina or Wiemar Republic or a Zimbabwe.

I'll see if I can find the WSJ article from a few years back about this..

Please do because what is happening right now is exactly the opposite of what you claim. The Fed is printing from thin air $85 Billion dollars per month or $1 Trillion per year.

The Fed balance sheet has gone from $800 Billion in 2007 to over $3.2 Trillion and soon will be over $4 trillion with no end to the printing in sight.

The end game will not be default. That carries political costs! And I know one thing for certain (and it is proven daily) our politicians will never make any choice to do anything that carries political costs.

Printing involves no political costs and gives the politicians cover to point fingers, to claim ignorance, outside influence and all sorts of other diversionary moves. We will hear all the normal clams, it's the hoarders, the speculators, the banks, the profiteers, etc.

Christ, it's happened over and over thousands of years and the politicians have always blamed the same people but never themselves.

Default?? Absolutely, positively NOT! Debasement! They are already doing it. Open your eyes.

 

[BogWalker]

Hasn't US currency lost something like half of its value in the last 20-30 years? Could have sworn I'd heard that once.

 

[roisigns]

For your consideration:


America is a spoiled brat blowing through the last of its inheritance.