5 ms·
i believe not only will this be worse than the depression for the US, it will indeed do in the US entirely. a nation's most important piece of paper is not its
by unrealwh 18y ago
i believe not only will this be worse than the depression for the US, it will indeed do in the US entirely. a nation's most important piece of paper is not its constitution (you can burn and rewrite one of those anytime you want one), it is its currency. you can only burn your currency once.
there is a very strong historical parallel - the french revolution. no matter what interpretation of this event you find in literature, they will all point to excess debt as one of the key, if not the key motivation for the revolution. weimar germany is another scenario where excess currency abuse literally did in the nation, and incidentally ushered in nazism.
there is no way the US can now get out of debt or even hope to slow down deficits. the rate of growth of the debt is astounding. one must wonder where the death bond lies...that dollar of debt that we issue that is rejected by all buyers and signals the end of the US. once the US dollar is rejected by all buyers, the US govt immediately ceases to exist by definition. police, army, firefighters...none of their paychecks have value anymore, so none of them will report for work.
how much is too much? our debt is around twelve trillion now, my guess is that at around twenty five trillion, its game over. we will reach that point by 2018 at the latest. the US is gone by 2020 at the latest. if any political structure survives, it will be helmed by an american stalin who will gorge on the nation and utterly obliterate it.
it will take the world one hundred years to reconstruct after the obliteration of the USD-backed fiat-debt financial system. pax romana was nothing more than a promise and a hope...once it went away the west lost centuries. the USD is no more than the pax romana of our era...a idea backed only by faith, not values
- gjm11 18y agoYou point out the parallel with Germany -- perhaps it's worth also pointing out that despite losing a major war, having its currency totally wrecked, falling into deranged totalitarianism, and losing another major war, Germany is still around and not doing too badly. So "do in entirely" and "utterly obliterate" seem a bit too strong to me. For that matter, the French Revolution doesn't seem to have destroyed France either. I think the majority opinion is that it was an improvement overall. (Of course, if anything like the same thing happens to the US as happened to Germany then that would be very, very, very bad. I just think you're exaggerating.)
- fallentimes 18y agoDoes this all mean you're going to be a billionaire in 2020 by capitalizing on the situation you describe?