Is It Time To DEFAULT On the DEBT And Start Over?

[Tom Horn]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

 

[IcebergSlim]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is.


This is complete nonsense....China has been doing this to support its equity markets and economy.....risk of default would be reflected in the yield of US sovereign debt...

10-Year Treasury Constant Maturity Rate

 

[Tom Horn]

China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is.


This is complete nonsense....China has been doing this to support its equity markets and economy.....risk of default would be reflected in the yield of US sovereign debt...

10-Year Treasury Constant Maturity Rate

You're complete nonsense and the subject here is default on the US debt...However you need to be schooled on China's latest capers:

China is dumping U.S. debt

 

[Mac1958]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

Who do you think owns our debt?

DEBT OWNED BY UNITED STATES AGENCIES

• Social Security (Social Security Trust Fund and Federal Disability Insurance Trust Fund) - $2.786 trillion
• Office of Personnel Management Retirement - $873 billion
• Military Retirement Fund - $601 billion
• Medicare (Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund) - $267 billion
• All Other Retirement Funds - $187 billion
• Cash on Hand to Fund Federal Government Operations - $508 billion. (Source: Treasury Bulletin, Monthly Treasury Statement, Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, December 2015)

DEBT OWNED BY THE PUBLIC

• Foreign - $6.175 trillion
• Federal Reserve - $2.461 trillion
• Mutual Funds - $1.056 trillion
• State and Local Government, including their pension funds - $803 billion
• Private Pension Funds - $403 billion
• Banks - $515 billion
• Insurance Companies - $293 billion
• U.S. Savings Bonds - $174 billion
• Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion. (Sources: Federal Reserve, Factors Affecting Reserve Balance, February 3, 2016. Treasury Bulletin, Ownership of Federal Securities, Table OFS-2, as of June 2015)

Do you think we should screw these people over? And what would happen to our credit rating for the future?

China can do whatever it wants with our bonds. We sold them to China, that's our own fault.

Source: The Real Owner of the U.S. Debt Will Surprise You
.

 

[Tom Horn]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

Who do you think owns our debt?

DEBT OWNED BY UNITED STATES AGENCIES

• Social Security (Social Security Trust Fund and Federal Disability Insurance Trust Fund) - $2.786 trillion
• Office of Personnel Management Retirement - $873 billion
• Military Retirement Fund - $601 billion
• Medicare (Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund) - $267 billion
• All Other Retirement Funds - $187 billion
• Cash on Hand to Fund Federal Government Operations - $508 billion. (Source: Treasury Bulletin, Monthly Treasury Statement, Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, December 2015)

DEBT OWNED BY THE PUBLIC

• Foreign - $6.175 trillion
• Federal Reserve - $2.461 trillion
• Mutual Funds - $1.056 trillion
• State and Local Government, including their pension funds - $803 billion
• Private Pension Funds - $403 billion
• Banks - $515 billion
• Insurance Companies - $293 billion
• U.S. Savings Bonds - $174 billion
• Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion. (Sources: Federal Reserve, Factors Affecting Reserve Balance, February 3, 2016. Treasury Bulletin, Ownership of Federal Securities, Table OFS-2, as of June 2015)

Do you think we should screw these people over? And what would happen to our credit rating for the future?

China can do whatever it wants with our bonds. We sold them to China, that's our own fault.

Source: The Real Owner of the U.S. Debt Will Surprise You
.

Who's got better credit than somebody with ZERO debt and hundreds of ICBMs? The pensions and SS/Medicare can easily be funded with new debt. All foreign debt is gone and we must do it before China can react militarily. The rest we can handle with tax revenue and tariffs that squeeze out foreign manufacturing; we'll make our own products again. And if the Fortune 500 hasn't moved their entire production back to US soil within 6 months, they can have their inventories seized as contraband and be banned from selling in the US for ten years.....they'll RUN back home. Then there's the matter of a Constitutionally mandated balanced budget and never again to run debt past $3T. This is RADICAL...the alternative is we become a third-world, crime-ridden collection of fifedoms and warlords.

 

[Dovahkiin]

It's impossible for the US to "default" unless morons like the OP hold office.

 

[Tom Horn]

It's impossible for the US to "default" unless morons like the OP hold office.

Ah, so I'm a "moron" for starting a discussion you're not equipped to take part in?

 

[sealybobo]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

Yes! Fuck the bankers.

 

[Dovahkiin]

It's impossible for the US to "default" unless morons like the OP hold office.

Ah, so I'm a "moron" for starting a discussion you're not equipped to take part in?

Oh believe me buddy, I know more about this then you think. Not going to dive into a drawn out discussion until I get to my computer.

 

[Tom Horn]

Oh believe me buddy, I know more about this then you think. Not going to dive into a drawn out discussion until I get to my computer.

Okay fine.....remember you've already called me a "moron"...buddy.

 

[IcebergSlim]

China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is.


This is complete nonsense....China has been doing this to support its equity markets and economy.....risk of default would be reflected in the yield of US sovereign debt...

10-Year Treasury Constant Maturity Rate

You're complete nonsense and the subject here is default on the US debt...However you need to be schooled on China's latest capers:

China is dumping U.S. debt

Uh.....what do you think yields on debt reflect?

and perhaps you should consider READING your links before blindly pasting them from the google page....

But right now, China is selling because it's in dire need of cash. Recently, it unleashed multiple moves to support its markets and prevent its currency from a freefall, while at the same time trying to stimulate the economy.

 

[IcebergSlim]

Oh believe me buddy, I know more about this then you think. Not going to dive into a drawn out discussion until I get to my computer.

Okay fine.....remember you've already called me a "moron"...buddy.

Can't fault him for a lack of perspicacity.....

 

[IcebergSlim]

We're currently at $19.3T under water with no end in sight. Some say the tipping point is $22T which should occur sometime in 2018. What would happen if we just said "screw it" and defaulted? For one thing, anybody holding Treasuries would be SOL...that includes our biggest debtor nation, China. China has been divesting itself of USTs in the last year knowing a default is on the horizon. And it is. At $22T we can no longer field an effective Military. At $22T the interest payment on the debt will swallow most of the funds used by various federal agencies, leaving us like Greece. So why wait until the magic number is reached?

What happens if the United States does not pay its public (national) debt of 18 trillion dollars? - Quora

Who do you think owns our debt?

DEBT OWNED BY UNITED STATES AGENCIES

• Social Security (Social Security Trust Fund and Federal Disability Insurance Trust Fund) - $2.786 trillion
• Office of Personnel Management Retirement - $873 billion
• Military Retirement Fund - $601 billion
• Medicare (Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund) - $267 billion
• All Other Retirement Funds - $187 billion
• Cash on Hand to Fund Federal Government Operations - $508 billion. (Source: Treasury Bulletin, Monthly Treasury Statement, Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, December 2015)

DEBT OWNED BY THE PUBLIC

• Foreign - $6.175 trillion
• Federal Reserve - $2.461 trillion
• Mutual Funds - $1.056 trillion
• State and Local Government, including their pension funds - $803 billion
• Private Pension Funds - $403 billion
• Banks - $515 billion
• Insurance Companies - $293 billion
• U.S. Savings Bonds - $174 billion
• Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion. (Sources: Federal Reserve, Factors Affecting Reserve Balance, February 3, 2016. Treasury Bulletin, Ownership of Federal Securities, Table OFS-2, as of June 2015)

Do you think we should screw these people over? And what would happen to our credit rating for the future?

China can do whatever it wants with our bonds. We sold them to China, that's our own fault.

Source: The Real Owner of the U.S. Debt Will Surprise You
.

Who's got better credit than somebody with ZERO debt and hundreds of ICBMs? The pensions and SS/Medicare can easily be funded with new debt. All foreign debt is gone and we must do it before China can react militarily. The rest we can handle with tax revenue and tariffs that squeeze out foreign manufacturing; we'll make our own products again. And if the Fortune 500 hasn't moved their entire production back to US soil within 6 months, they can have their inventories seized as contraband and be banned from selling in the US for ten years.....they'll RUN back home. Then there's the matter of a Constitutionally mandated balanced budget and never again to run debt past $3T. This is RADICAL...the alternative is we become a third-world, crime-ridden collection of fifedoms and warlords.

The pensions and SS/Medicare can easily be funded with new debt.

Which will be bought by whom in the wake of your default?

Go back to the Daily Caller where your obvious deficiencies won't be quite so......uh......obvious.....

 

[Tom Horn]

Uh.....what do you think yields on debt reflect?

and perhaps you should consider READING your links before blindly pasting them from the google page....

But right now, China is selling because it's in dire need of cash. Recently, it unleashed multiple moves to support its markets and prevent its currency from a freefall, while at the same time trying to stimulate the economy.

Duh....I read my link and maybe you should too....China isn't about to get saddled with US debt with the looming default. As to yields on debt, we have no recourse but take our medicine thanks to situation you sniveling Rats have put us in.

 

[Tom Horn]

The pensions and SS/Medicare can easily be funded with new debt.

Which will be bought by whom in the wake of your default?

Go back to the Daily Caller where your obvious deficiencies won't be quite so......uh......obvious.....

Better grab your water wings, Slim...you're in way over your head. After a default and the BOOM returning manufacturers would add in tax revenue, we're instantly solvent again. Where else can the world go?

 

[IcebergSlim]

Uh.....what do you think yields on debt reflect?

and perhaps you should consider READING your links before blindly pasting them from the google page....

But right now, China is selling because it's in dire need of cash. Recently, it unleashed multiple moves to support its markets and prevent its currency from a freefall, while at the same time trying to stimulate the economy.

Duh....I read my link and maybe you should too....China isn't about to get saddled with US debt with the looming default. As to yields on debt, we have no recourse but take our medicine thanks to situation you sniveling Rats have put us in.

So your citation confirms what I told you.......there is no "looming default"...

The yields on our debt DON'T REFLECT A LOOMING DEFAULT!

Dayum....

 

[IcebergSlim]

The pensions and SS/Medicare can easily be funded with new debt.

Which will be bought by whom in the wake of your default?

Go back to the Daily Caller where your obvious deficiencies won't be quite so......uh......obvious.....

Better grab your water wings, Slim...you're in way over your head. After a default and the BOOM returning manufacturers would add in tax revenue, we're instantly solvent again. Where else can the world go?

Geez, man.....wise up....walk away, and come back with a new identity.....

 

[Tom Horn]

So your citation confirms what I told you.......there is no "looming default"...

The yields on our debt DON'T REFLECT A LOOMING DEFAULT!

Dayum....

Keep walking tool.....I'm done with your weak little diversions.

 

[Tom Horn]

Geez, man.....wise up....walk away, and come back with a new identity.....

My sentiments exactly....you're as lightweight as whoever you were before.

 

[IcebergSlim]

Geez, man.....wise up....walk away, and come back with a new identity.....

My sentiments exactly....you're as lightweight as whoever you were before.

Sure....

So tell me what yields on debt reflect........

and tell me where yield on US sovereign debt is relative to its historical average....

direct responses, eschew excess verbiage....