Moody’S Puts The Us On Review For Possible Downgrade

[shindigger]

I don't know how this is all going to end. However I have a feeling there will be an almight debt write off of some sort.

Things will get worse and worse and lots of countries will get together and just decide to write off a lot of debts thay owe to each other and who knows who else.

Whether or how that would work - I have no idea. Of course private companies would lose a lot of money - especially pensions etc.. - if countries just decided to cancel all their bonds etc..

However they may put in some compensation scheme in place where the bonds that have disappered are simply replaced with new magic money exactly equal to the old. The Governments Bonds are cancelled. Suddenly they have far less, or no, debt compared to before. The companies and pensions have the same Zeros on the computer screen as before. Nobody in the general public has any more of this money so hyperinflation may not be as serious a concern. Although who knows about that.

Would anyone really notice ? The downside is that people lose faith in the FIAT funny money game. Then again - they have been printing funny money for years now and people still head down to the shops to buy their shopping with the funny money and don't give it a second thought.

The only other option I can see is nearly every other country eventually defaults and collapses. Which would lead to a similar outcome but in a far messier way.

I would not be surprised if discussions like this are already underway.

I'd like someone to explain the mechanics of how a state based debt jubilee might cross polinate in to a personal debt jubilee.

I've posted a thread on this. And as a seasoned HPCer i reckon this is where a lot of debate on here could be focussed in the coming months. I can certainly see Obama pulling this one out 2 weeks before the next US election. I dont think we have such a desperate nutjob running our affairs any more.

States defaulting on one another is surely a matter of time isn't it.

Isn't it?

If only i could possibly get some pointers from the BBC, but theyre too busy foaming at the **** over News Corpse.

We live in mental times.

Edited July 14, 2011 by shindigger

[shindigger]

They have no intention of doing it. Just a smokescreen so that they can be "seen to be fair" whilst shafting EU credit ratings for fun and profit whilst their hedge fund owners can make a killing from the volatility. (Yes, do have a look who the majority shareholders of these institutions are...)

You are Max Keiser and i claim my £5.

[ccc]

I'd like someone to explain the mechanics of how a state based debt jubilee might cross polinate in to a personal debt jubilee.

I've posted a thread on this. And as a seasoned HPCer i reckon this is where a lot of debate on here could be focussed in the coming months. I can certainly see Obama pulling this one out 2 weeks before the next US election. I dont think we have such a desperate nutjob running our affairs any more.

States defaulting on one another is surely a matter of time isn't it.

Isn't it?

If only i could possibly get some pointers from the BBC, but theyre too busy foaming at the **** over News Corpse.

We live in mental times.

Why would it have to ? As long as countries are suddenly 'solvent' then do the chumps in charge really care if many of the public are still mired in debt ?

All this stuff will be getting discussed already. BIS, Bilderbergers, IMF you name it. They will be chatting about the 'way out' for sure.

Something has to give. Either it is complete collapse or some semi cunning subtle collapse where most do not even notice. As I said before - they have made up numbers through QE and people have barely even registered. A sudden debt jubilees for the nations of the World would probably be hardly noticed. They may even sell it as a way to help Africa and all.

Who ******ing knows. As you say - mental times.

[Guest tbatst2000]

Short memory?

S&P threatens to cut U.S. credit rating on deficit

Moodys had to follow suit at some stage - just to cover the tail risk of the U.S. failing to reach a last-minute deal on the debt ceiling.

Simple as that.

Nope, no memory at all! If I'd seen that I'd have posted it too.

[Guest tbatst2000]

They have no intention of doing it.

Agree with that. All the same, it surprised me.

Just a smokescreen so that they can be "seen to be fair" whilst shafting EU credit ratings for fun and profit whilst their hedge fund owners can make a killing from the volatility. (Yes, do have a look who the majority shareholders of these institutions are...)

I don't think I'd go that far but I would imagine they felt that they had to do something just in case there's some kind of temporary default. It's not at all impossible the US will suspend debt repayments for some short period as part of some final piece of political brinksmanship. I think the chances of an actual 'you really aren't getting your dollars back from us' default are miniscule though.

[Tiger Woods?]

Agree with that. All the same, it surprised me.

I don't think I'd go that far but I would imagine they felt that they had to do something just in case there's some kind of temporary default. It's not at all impossible the US will suspend debt repayments for some short period as part of some final piece of political brinksmanship. I think the chances of an actual 'you really aren't getting your dollars back from us' default are miniscule though.

I was being a tad hyperbolic. The ratings agencies are a corrupt joke though. Everyone will get their dollars. They just won't buy half of what you thought they would.