On 24/01/2010 5:20 PM, thunder wrote:
On Sun, 24 Jan 2010 15:02:26 -0500, Eisboch wrote:


What happens if the USA just says, "No"?

Just curious.

It would be one hell of a crash, and 5-10 very rough years, but then...
We'd have to get our own house in order, as no other country would want
to finance our overspending ways. Personally, I don't think it would be
all bad, but there are a lot easier ways to get our house in order. It
would be playing with fire, and you never know how burned we would get.

Iceland, Brazil, Zimbabwe, Venzuela, Argentina, Germany pre WW II all
have some history on this. Generally not good for the standard of
living which drops signifigantly. How far it drops depends a lot on the
size of the default. $2 trillion ot the Chinese, you will notice it big
time. Especially if the Saudis want Euros for USDs on the value drop --
could happen very fast. Get the Japanese banks to drop in the middle
being a major holder of US debt... all hell could break loose when the
germany banks fall.

Just waiting for the music to stop.