We are in a huge political crisis about raising of the US det ceiling. The US Republican party is demanding massive spending cuts in the trillions of dollars to agree to increase the national debt. It is very possible that no agreement will be reached with President Obama. The debt ceiling will remain just what it is now.
We hear all sorts of dire warnings that the US could default on its bonds and lose its status as the reserve currency of the world. According to this threat, the US will lose its "full faith and credit of the US government" for the first time in its 235 year history. There are warnings that even a mini default lasting a few nanoseconds could destroy the credit rating of the US and turn this country into another Greece.
"Bot on my watch" is a saying that people in positions of responsibilit understand well. President Obama knows the saying well. He will not allow himself to go down in history as the president who let the US government default and lose its credit rating. AT ALL COSTS THE MONEY WILL BE FOUND TO PAY THE DEBTS!!!!!!!!!!!!!!!!!!!!
What will happen is that there will be massive "robbing Peter to pay Paul." Money will taken from many places in the US budget to pay the debts. Social Security will be one of the places that they take money from. Many senior citizens in the US depend on their monthly Social Security check for survival. A lot of these dependents could find their Social Security check cut down or cut off all together for several months.
Senior citizens are the most politically-active segmanet of the US voters. When Social Security gets cutm they will get very angry. This anger will be taken out on the politicians. They will be mad at the whole political structure. I suspect that every incumbent could find themselves in trouble when the 2012 elections come around.
The economy will also slip back into another recessiona s all of the money is taken out of the economy.
There could be a market panic. Investors would find other places of safety aside from the US dollar. Gold and the Swiss Franc come to mind.
This is the time to be alert and liquid.
We hear all sorts of dire warnings that the US could default on its bonds and lose its status as the reserve currency of the world. According to this threat, the US will lose its "full faith and credit of the US government" for the first time in its 235 year history. There are warnings that even a mini default lasting a few nanoseconds could destroy the credit rating of the US and turn this country into another Greece.
"Bot on my watch" is a saying that people in positions of responsibilit understand well. President Obama knows the saying well. He will not allow himself to go down in history as the president who let the US government default and lose its credit rating. AT ALL COSTS THE MONEY WILL BE FOUND TO PAY THE DEBTS!!!!!!!!!!!!!!!!!!!!
What will happen is that there will be massive "robbing Peter to pay Paul." Money will taken from many places in the US budget to pay the debts. Social Security will be one of the places that they take money from. Many senior citizens in the US depend on their monthly Social Security check for survival. A lot of these dependents could find their Social Security check cut down or cut off all together for several months.
Senior citizens are the most politically-active segmanet of the US voters. When Social Security gets cutm they will get very angry. This anger will be taken out on the politicians. They will be mad at the whole political structure. I suspect that every incumbent could find themselves in trouble when the 2012 elections come around.
The economy will also slip back into another recessiona s all of the money is taken out of the economy.
There could be a market panic. Investors would find other places of safety aside from the US dollar. Gold and the Swiss Franc come to mind.
This is the time to be alert and liquid.
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