Trigger Mike Posted October 10, 2013 Posted October 10, 2013 Let's assume for the scary media's sake there is a default. That would mean the interest rates would finally start to rise and we could finally make decent interest on our savings. That would last just until the laws of supply and demand kicked in just as they did when Italy, Spain, Greece, Ireland to name a few had massive debt and no way to pay it. Their bond prices dropped, the interest they paid went up to the point investors were willing to take the risk. The law of supply and demand have not been repealed by congress or executive order. The law of supply and demand is universal. After that happens, the rest will wish they had stepped in and bought US debt when it was cheap.
Dirty Dan Dawkins Posted October 10, 2013 Posted October 10, 2013 Let's assume for the scary media's sake there is a default. That would mean the interest rates would finally start to rise and we could finally make decent interest on our savings. That would last just until the laws of supply and demand kicked in just as they did when Italy, Spain, Greece, Ireland to name a few had massive debt and no way to pay it. Their bond prices dropped, the interest they paid went up to the point investors were willing to take the risk. The law of supply and demand have not been repealed by congress or executive order. The law of supply and demand is universal. After that happens, the rest will wish they had stepped in and bought US debt when it was cheap. Nope.The Fed will continue to manipulate currency and interest rates.
Krazy Kajun Posted October 10, 2013 Posted October 10, 2013 Betcha dollars to donuts that the gubmint printing presses are still churning out money.
Yul Lose Posted October 10, 2013 Posted October 10, 2013 With no gold to prop up the dollar the only thing they can do is print money.
Rye Miles #13621 Posted October 10, 2013 Posted October 10, 2013 http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/08/five-things-you-need-to-know-about-the-new-hundred-dollar-bill/ Yeppers, the printing presses are hot!!!
Poet Jones 99980 Posted October 10, 2013 Posted October 10, 2013 It's a failed experiment...and noone is willing to admit it..so they just keep churnin' out the new money and keep devalueing our dollar. In the end, the result will be the same Trigger Mike. It's just a less inclined, but not a less slippery slope. Anyways, when the U.S., or whatever we call it then, gets dropped back into the 1800s...some of us will be ready, The sad part is that a lot of us here fought and were damaged in the fight to preserve our way of life and it's being sold off piecemeal to our debtors.
Trigger Mike Posted October 10, 2013 Author Posted October 10, 2013 We have been on and off the gold standard many times. Presidents take us off or put us back on it based on their perceived fear of the day. Right now the perceived fear is I can't run up debt if tied to gold and then can't give away as much and not get elected. The treasury can print money all it wants but if the market place refuses to take the risk of US debt without higher rates then they can not escape it. Rates will go higher. Eventually that transfers to our savings and we can collect higher interest. The laws of economics are greater than the federal reserve or even the king.
Red Gauntlet , SASS 60619 Posted October 10, 2013 Posted October 10, 2013 Always wanted to join Italy, Spain, and Greece.... not really.
Waimea Posted October 10, 2013 Posted October 10, 2013 I remember CD rates in the late 70's were around 12% but inflation was around 18%. I don't really care to revisit that time. Most of the time when a country defaults on its debt inflation goes into the triple digits. Maybe the 70's weren't so bad after all. Waimea
Trigger Mike Posted October 10, 2013 Author Posted October 10, 2013 Always wanted to join Italy, Spain, and Greece.... not really. we can live like they do without buying a plane ticket.
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