Jump to content
House Price Crash Forum
Injin

Ladies And Gentlemen: The Us Is Insolvent

Recommended Posts

http://jessescrossroadscafe.blogspot.com/2...t-of-money.html

Obama openly says what anyone with common sense has known for quite some time: the US is broke, and will not be able to honor its financial and fiduciary obligations.

The question remains how the US restructures that debt and how big a haircut the debt holders will take.

20%? 30%? More like upwards of 50% at least in real terms.

And who are these debt holders?

Anyone who hold Treasury debt obligations and financial assets, from the Long Bond to the US Dollar, and assets guaranteed by the Federal Reserve and the Treasury.

Technically the debt will be serviced and the interest paid according to the terms of the agreements, with devalued US dollars.

The process will continue until the debt is restructured and the dollar is replaced with a new dollar. This may take some years.

But we are now in the endgame.

Didn't you just know they would spill it over a long holiday weekend?

Don't be too concerned, there will be more spin and denials after this trial balloon has been floated, and life will go on.

"Oh, that's not what Obama meant. He means we have a problem but there are the means and the time to address and repair it before it becomes too great."

People have an enormous capacity for delusion bordering on selective amnesia. Go back and read the posts on this blog starting in September 2008. Then reflect on what has been said recently on Wall Street and you will see what we mean.

We are now in the endgame of an historic credit bubble that will result in a currency crisis of epic proportions.

http://www.drudgereport.com/flashocs.htm

In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: "We are out of money."

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we've made on health care so far. This is a consequence of the crisis that we've seen and in fact our failure to make some good decisions on health care over the last several decades.

Here we go...

Share this post


Link to post
Share on other sites
The admission had to be made. Perhaps now we can see some progress.

Dollar to plummet next week.

theres one thing to know it but another to scare the sheet out of the sheeple by saying it, Obama is making a huge mistake in saying it.

Share this post


Link to post
Share on other sites
Well, that is interesting.

We are not seeing political doublespeak or spin doctored apocryphal press releases here.

I wonder what the markets are going to do on Monday...

I'd say drop like a bloody stone, is Obama dumb or what.

Share this post


Link to post
Share on other sites

I like his choice of words "we've had to spend money to salvage our financial system". In my book, salvage generally involves rescuing something that's worth rescuing.

Share this post


Link to post
Share on other sites
US and UK markets closed on Monday ain't they. Asia might be interesting though.

aye

Share this post


Link to post
Share on other sites

Markets, hear no evil see no evil....but when evil is spoke............

Share this post


Link to post
Share on other sites

isnt a holiday about the best time to deliver bad news? americans will be out and about scoffing their fat faces with hot dogs and hamburgers watching pop idol or whatever and wont watch/comprehend this latest news.

Share this post


Link to post
Share on other sites
isnt a holiday about the best time to deliver bad news? americans will be out and about scoffing their fat faces with hot dogs and hamburgers watching pop idol or whatever and wont watch/comprehend this latest news.

Yup.

If it all goes seriously Pete Tong in asia they can always extend the bank holiday to a week or a fortnight as well.

Share this post


Link to post
Share on other sites

If EVERYBODY already knows it what difference does it make saying it?

Its this whole elephant in the middle of the room thing , THERE'S A BL**DY ELEPHANT IN THE MIDDLE OF THE ROOM FOR GOD SAKE, so why is everyone looking out of the window going "nice day isn't it, haven't seen an elephant for ages"!!

I just don't get this.

Investors surely know the US is out of money just as the UK is out of money end of the road finished.

So what are we saying, investors think US & UK have something up their sleeves? Surely not, I would have thought investors as a tribe were a pretty shrewd bunch. OK you can say how shrewd were they to buy RMBS ? BUT ....

I am a bear of little brain and I can see that the UK cannot print enough / borrow enough to bail out more banks and the building societies AND given them money to lend ....and for what purpose would they do that? What happens next year and the year after , where will the money keep coming from? Nobody can't plug the £200bn shortfall due to the RMBS market crashing.

So what difference does it make if someone says "OK WE ARE BROKE" ....it can't make a country any more or less broke than it was before the denial can it? Surely investors KNOW don't they that the US and UK are bankrupt?

Perhaps they don't.

Perhaps its like most of the UK thinking that 2007 property prices are just an election away!! Failing it would seem to comprehend that the UK went broke trying to support a hugely inflated property bubble, but eventually someone has to say don't they THERE IS AN ELEPHANT IN THE MIDDLE OF THE ROOM TELLING ME MY PROPERTY SOON WILL BE VALUED AT 50% LESS. The government already know it , they stress tested the RBS and Lloyds for 50% falls + 2 years more of recession . Moody's know it they stress tested for 60% falls. Previous figures seem to confirm that if property goes up 47% (last crash) it will fall 37% , this time it went up 147% surely if a bear with little brain can see what is going to happen next investors SURE AS HELL CAN!!! ;)

Edited by Sybil13

Share this post


Link to post
Share on other sites

because its one thing people thinking it but they hide their head and plug their ears going la la la la la. When they hear it, they turn rabid and start chucking mentals. Obama is not the brightest of creatures. However though Govt's have to keep up some confidence, this doesnt instill confidence.

Share this post


Link to post
Share on other sites
If EVERYBODY already knows it what difference does it make saying it?

Its this whole elephant in the middle of the room thing , THERE'S A BL**DY ELEPHANT IN THE MIDDLE OF THE ROOM FOR GOD SAKE, so why is everyone looking out of the window going "nice day isn't it, haven't seen an elephant for ages"!!

I just don't get this.

Investors surely know the US is out of money just as the UK is out of money end of the road finished.

So what are we saying, investors think US & UK have something up their sleeves? Surely not, I would have thought investors as a tribe were a pretty shrewd bunch. OK you can say how shrewd were they to buy RMBS ? BUT ....

I am a bear of little brain and I can see that the UK cannot print enough / borrow enough to bail out more banks and the building societies AND given them money to lend ....and for what purpose would they do that? What happens next year and the year after , where will the money keep coming from? Nobody can't plug the £200bn shortfall due to the RMBS market crashing.

So what difference does it make if someone says "OK WE ARE BROKE" ....it can't make a country any more or less broke than it was before the denial can it? Surely investors KNOW don't they that the US and UK are bankrupt?

Perhaps they don't.

Perhaps its like most of the UK thinking that 2007 property prices are just an election away!! Failing it would seem to comprehend that the UK went broke trying to support a hugely inflated property bubble, but eventually someone has to say don't they THERE IS AN ELEPHANT IN THE MIDDLE OF THE ROOM TELLING ME MY PROPERTY SOON WILL BE VALUED AT 50% LESS. The government already know it , they stress tested the RBS and Lloyds for 50% falls + 2 years more of recession . Moody's know it they stress tested for 60% falls. Previous figures seem to confirm that if property goes up 47% (last crash) it will fall 37% , this time it went up 147% surely if a bear with little brain can see what is going to happen next investors SURE AS HELL CAN!!! ;)

While the elephant owner (that serious looking guy with the big gun) is pretending there is no elephant, the elephant isn't going to be dealt with.

When he exclaims "****** me! An elephant, we'd better move it" somebody is about to be trampled to death....

Share this post


Link to post
Share on other sites
because its one thing people thinking it but they hide their head and plug their ears going la la la la la. When they hear it, they turn rabid and start chucking mentals. Obama is not the brightest of creatures. However though Govt's have to keep up some confidence, this doesnt instill confidence.

and the stock markets are very very short term....if they think no-one has noticed what theyve seen, they think they can play the game to their advantage as they will be quickest out as they KNOW the truth.

sadly, I think, Everyone KNOWS the truth, so we can expect everyone to pull out when they all think everyone else has noticed.

a crash could be very sudden indeed.

Share this post


Link to post
Share on other sites
Well at least the man admitted they had a problem...

indeed, he is a debtaholic and admission is the road to recovery.....shame a fresh bottle of debt is being poured over his face.

Share this post


Link to post
Share on other sites

Thing is the markets already know whats going on don't they? So acknowledgement of a problem could mean the first signs of recovery.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.