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gruffydd

Moody's Warns Of Us Debt Default

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like that'll happen.

the days of default have gone.

The US is ALREADY defaulting, they are overtly printing to pay the bills which is pretty much a slow motion default. Its why China is constantly trying to get rid of its $ and is hoovering up gold.

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The US is ALREADY defaulting, they are overtly printing to pay the bills which is pretty much a slow motion default. Its why China is constantly trying to get rid of its $ and is hoovering up gold.

Ken is of course right, if your print your own currency you can never default in the traditional sense, if you do not wish to do so, but you can stealth default via inflation and currency devaluation.

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Meh.. just sabre rattling.

They are saying if they aren't allowed to print and lend it to government, they might have to actually default the traditional way.

Which would be embarrassing. So they won't.

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The US is screwed it's whole economy is based on consumer debt, Wall Street is hooked on govt deficit spending for profit.

Wall Street aside the same would apply here..methinks.

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The US is ALREADY defaulting, they are overtly printing to pay the bills which is pretty much a slow motion default. Its why China is constantly trying to get rid of its $ and is hoovering up gold.

Has China reduced its holdings of US debt?

I doubt it can, not without destroying its own economy.

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Has China reduced its holdings of US debt?

I doubt it can, not without destroying its own economy.

How is it possible that a nation with a population of over 1.3 Billion people can have its economy destroyed as a result of investment in debt?

Debt is an illusion.

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Has China reduced its holdings of US debt?

I doubt it can, not without destroying its own economy.

Dunno the CCP claim a lot of things none of which are independently verifyable. Like the gold painted tungsten bars in Fort Knox. However a lot of infrastructure work which was scheduled for the far far future has been bought forward along with work for other nations as well. The CCP also encouraged its citizens to buy gold and silver a few years ago as well as their exports of PMs going off a cliff recently as well.

Its a game of double bluff. I.e. the US gov wants to default maybe via New Dollars only convertable in the US leaving Japan and China holding the bag. But they are scared that China may not have all those $ they claim to have. Thus if the US does default proper style China may turn round and say so what we don't have ANY!

But seeing as China went hyper 50 years ago AND has gone hyper many times through history I'm pretty sure they will have disposed of a lot of those $ and do what the US does when questioned about their gold reserves. They say trust us we have them.

The US is scared that China doesn't have those $ meaning it goes uber hyper when the PRC announces after the default it has considerably less $ than it says it has.

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The US is screwed it's whole economy is based on consumer debt, Wall Street is hooked on govt deficit spending for profit.

Sounds familiar but I'm sure the UK is acting more responsible than this :P

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What is a short-lived default by the US?

In the US the government needs authorisation from Congress to increase its "debt ceiling". With Republican majority now there, the Congress will negotiate policy changes, and play brinkmanship games with it. If the deadline passes, the gov. will have to stop paying creditors whilst the impasse lasts, but probably only a few days - "short lived".

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As I understand it, China has hedged 50% of it's holdings of USD through the purchase/lease of overseas assets and mineral resources.

On a separate note - here US Has no gold reserves!

Has China reduced its holdings of US debt?

I doubt it can, not without destroying its own economy.

Edited by Lord Lister

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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