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Barack Obama Warns Of Market Meltdown If Us Debt Talks Fail

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http://www.telegraph.co.uk/finance/economics/8657016/Barack-Obama-warns-of-market-meltdown-if-US-debt-talks-fail.html

The stakes have risen dramatically in the last 48 hours after long-running talks between President Obama and John Boehner, the top Republican in Congress, collapsed in acrimony.

"It's very important that the leadership (in Congress) understands that Wall Street will be opening on Monday, and we'd better have some answers," President Obama warned.

Failure to strike a deal by August 2, when the government has said it will no longer be able to pay all its bills, will leave markets facing the prospect of the first ever major default by the US.

Both President Obama and Democrats and Republicans in Congress have insisted that an agreement on reducing America's long-term deficit is required to approve an increase in the debt ceiling. But weeks of increasingly fraught talks have delivered nothing. Having met in The White House yesterday, President Obama and the leaders from both parties in the Senate and House of Representatives are expected to meet again on Sunday as the pressure intensifies.

Excellent the threats start, the US need more debt otherwise the debt junkie markets will collapse.

I love how the leaders just ignore the debt figure and the collapse that will trigger when everyone finally realises the money will never ever be paid back.

Still as long as we can pretend everything will be better if we can just have some more debt we might be able to delay the inevitable.

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http://www.telegraph.co.uk/finance/economics/8657016/Barack-Obama-warns-of-market-meltdown-if-US-debt-talks-fail.html

Excellent the threats start, the US need more debt otherwise the debt junkie markets will collapse.

I love how the leaders just ignore the debt figure and the collapse that will trigger when everyone finally realises the money will never ever be paid back.

Still as long as we can pretend everything will be better if we can just have some more debt we might be able to delay the inevitable.

The whole idea behind the entire system is that the money can never be repaid.

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Now is the time to pull the trigger. Its time the USA simply defaulted on the treasuries. Just the interest payments a year would save them 500 billion USD.. then there is the 14.3 trillion they don't have to worry about principle payments on.

There is nothing legally stopping America from simply declaring that they have decided to default on all outstanding treasuries.

What are other nations going to do about it.. the answer is nothing. What is a nation like Japan going to do.. stop selling America cars? There are plenty of other nations who would be glad to fill the void if so.

'The Market'.. might melt down, but the US economy would take off like a rocket freed from the debt burden. Honestly we are nearing the point of a total debt jubilee. Half the banks are owned by the government anyway so its just an accounting entry.

Edited by aa3

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Chr!st! BBC just hinted at this story.... for 10 seconds!!! Then onto the Amy Whinehouse story. Unbelievable!!!!!!!!

I mean SERIOUSLY! Europe and America about to default and we get Amy Winehouse on BBC News with sad looks from the presenters?

What sort of a joke is this!?

Edited by guitarman001

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'The Market'.. might melt down, but the US economy would take off like a rocket freed from the debt burden. Honestly we are nearing the point of a total debt jubilee. Half the banks are owned by the government anyway so its just an accounting entry.

Better load up on a big house now!

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Better load up on a big house now!

At some point in the saga those who are so far in debt its not funny will win. But what matters more than that is that there is big cash in the economy flowing around. So you, me, everyone can go out there and make money.

I think Argentina is the end game. When they had that year with 5,000% inflation it wiped out the debts of the debtors. But the next day life went on, the economy moved forward. People freed from their debt burdens took that money and spent it. Which was good jobs for other people.

The bankers and their media puppets are warning us all of dire consequences, apocalyptic consequences.. unless we keep paying them all the debts we owe. Yet in countless nations which have defaulted like Argentina and Iceland, life carries on.. actually the economy improves.

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I find it all a bit bizzare.

Surely in life if you have an opponent or enemy you dont put yourself in a position where they can say yes or no to put you under.

Obama was not president last week he has been for a while now.

If I was cold calculated republican I would just say no as if collapse does come.....the government will get the blame.

Also if your a hard money conservative surely default is best whilst the USA has a military advantage rather than in another 10/20 years.

I just think its bizarre the president puts himself in this position where he is trying to paint the other side as kill joys? Why should they whats in it for them maybe he goes and spend all this extra money and wins the next election buying votes...etc.

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I find it all a bit bizzare.

Surely in life if you have an opponent or enemy you dont put yourself in a position where they can say yes or no to put you under.

Obama was not president last week he has been for a while now.

If I was cold calculated republican I would just say no as if collapse does come.....the government will get the blame.

Also if your a hard money conservative surely default is best whilst the USA has a military advantage rather than in another 10/20 years.

I just think its bizarre the president puts himself in this position where he is trying to paint the other side as kill joys? Why should they whats in it for them maybe he goes and spend all this extra money and wins the next election buying votes...etc.

Yes now is the time while hte US military is unbeatable and other nations are not ready to challenge them. It will also put America in a better position to remain in its unbeatable position.

If President Obama and the leaders have decided they are going to default Obama can't just say he wants to default. He has to blame it on 'the opposition'. Then when the economy rebounds in a year without the debt burden Obama needs to position himself to take credit for leading the nation as its President, at that point in time.

The Republicans are in the same boat. They can't actually say they want to default. They have to blame it on President Obama's unwillingness to negotiate.

I'm usually highly critical of democracy, but this game does seem a real strength. You can do what needs to be done, all the while blaming the opposition.

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Topic should be "Barack Obama Warns Of Election Campaign Meltdown If Us Debt Talks Fail.

Nees lots of newly printed money to pretend and extend and sod the consequences.

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I'm not sure defaulting would hurt Obama's re-election bid. What percentage of Americans hold a substantial amount of treasuries.. like 1%?

The banks would just write form letters to inform those few, elderly clients that their term deposits had been lost. The banks already had to write them awhile back that most of their stock investments had been lost.

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I'm not sure defaulting would hurt Obama's re-election bid. What percentage of Americans hold a substantial amount of treasuries.. like 1%?

The banks would just write form letters to inform those few, elderly clients that their term deposits had been lost. The banks already had to write them awhile back that most of their stock investments had been lost.

It would, they'd have to stop borrowing and balance budgets, or raise taxes, the govt would have to epnd what it extract from the population and ot jsut keep on writing blank cheques.

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It would, they'd have to stop borrowing and balance budgets, or raise taxes, the govt would have to epnd what it extract from the population and ot jsut keep on writing blank cheques.

After they defaulted on the 14.5 trillion outstanding now. Two days later banks would be lining up to lend money to the now 'debt free' America. 'Balance sheet never looked better'.

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Honestly we are nearing the point of a total debt jubilee.

What are the US going to give the Chinese in this case?

A lot of this debt is fake but there are real mugs out there like the Chinese who have worked like dogs to accumulate what they have. Cannot imagine they are going to be too pleasure if the balance sheet is suddenly reset to zero, in such a case I'd expect WW3 and nuclear missiles to start ripping through the skies.

Trouble with America is it's a big kid with a huge arsenal of weapons, worst still, an idiot is in charge.

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After they defaulted on the 14.5 trillion outstanding now. Two days later banks would be lining up to lend money to the now 'debt free' America. 'Balance sheet never looked better'.

If they do no default the 14.5 trillion will be 21 trillion before you can say "Holy debt Batman!"... but I can't see a default happening as much as I would like to see it... and think thy should...

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If I was cold calculated republican I would just say no as if collapse does come.....the government will get the blame.

Isn't that why Barrak Obama is telling people the debt extension is very important and he's doing all he can to get it passed? It will be the Republicans not voting for it. They're going to say his idea of compromise was pitiful if they don't back it.

Be funny if they didn't.

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What are the US going to give the Chinese in this case?

A lot of this debt is fake but there are real mugs out there like the Chinese who have worked like dogs to accumulate what they have. Cannot imagine they are going to be too pleasure if the balance sheet is suddenly reset to zero, in such a case I'd expect WW3 and nuclear missiles to start ripping through the skies.

Trouble with America is it's a big kid with a huge arsenal of weapons, worst still, an idiot is in charge.

There is nothing China could do at the moment. I'm increasingly thinking the day after a default it would be business as usual. Its not like the Chinese could even stop selling America stuff.

Likewise in our world of nuclear weapons, if America had 3 trillion in Chinese national bonds, and the Chinese decided to default, there is nothing America could do.

The historical choice is to force the debt peonage on the foreigner you have to physically invade their country. Or at minimum cause a civil war and back the side that will enforce your debts on the populace. With nukes and these super states, thats just not going to happen.

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If they do no default the 14.5 trillion will be 21 trillion before you can say "Holy debt Batman!"... but I can't see a default happening as much as I would like to see it... and think thy should...

Honestly if you are a debtor who knows you are going to default.. but people are still giving you an unlimited credit line, you might as well keep running it up.

On the other hand if five years ago I told you, the United States of America would be having a serious debate on defaulting on its debt.. it would have sounded crazy. Like a kooky website. Its gone from a very distant conspiracy like thought, to something that is a real possibility. Even though that possibility is still low.

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There is nothing China could do at the moment. I'm increasingly thinking the day after a default it would be business as usual. Its not like the Chinese could even stop selling America stuff.

Makes you wonder, still it won't be long before we have an answer to this riddle since not of these debts can ever be paid back. The final bust-up is coming one way or another.

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Sounds like people are getting nervous stateside, all day yesterday and as of today (10:35), Buillonvault had no sellers for Gold in New York on their market.

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Chr!st! BBC just hinted at this story.... for 10 seconds!!! Then onto the Amy Whinehouse story. Unbelievable!!!!!!!!

I mean SERIOUSLY! Europe and America about to default and we get Amy Winehouse on BBC News with sad looks from the presenters?

What sort of a joke is this!?

haha :) Can you see the Propaganda techniques ? :)

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How many billion does Obama need to get re-elected? Who is he relying on to pay that money?

http://www.huffingtonpost.com/jeffrey-sachs/budgetary-deceit-and-amer_b_907684.html

The Democrats of the White House and much of Congress have been less crude, but no less insidious, in their duplicity. Obama's campaign promise to "change Washington" looks like pure bait and switch. There has been no change, but rather more of the same: the Wall-Street-owned Democratic Party as we have come to know it. The idea that the Republicans are for the billionaires and the Democrats are for the common man is quaint but outdated. It's more accurate to say that the Republicans are for Big Oil while the Democrats are for Big Banks. That has been the case since the modern Democratic Party was re-created by Bill Clinton and Robert Rubin.

Thus, at every crucial opportunity, Obama has failed to stand up for the poor and middle class. He refused to tax the banks and hedge funds properly on their outlandish profits; he refused to limit in a serious way the bankers' mega-bonuses even when the bonuses were financed by taxpayer bailouts; and he even refused to stand up against extending the Bush tax cuts for the rich last December, though 60 percent of the electorate repeatedly and consistently demanded that the Bush tax cuts at the top should be ended. It's not hard to understand why. Obama and Democratic Party politicians rely on Wall Street and the super-rich for campaign contributions the same way that the Republicans rely on oil and coal. In America today, only the rich have political power.

Obama could have cut hundreds of billions of dollars in spending that has been wasted on America's disastrous wars in Afghanistan, Iraq, Libya, and Yemen, but here too it's been all bait and switch. Obama is either afraid to stand up to the Pentagon or is part of the same neoconservative outlook as his predecessor. The real cause hardly matters since the outcome is the same: America is more militarily engaged under Obama than even under Bush. Amazing but true.

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Anyone reading this and does not own Gold or Silver had better wake up and start doing some research because if you don't you are so screwed.

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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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