Quote of day—Brett

I think the U.S. will default. It has to.

But we will be okay. This is because we will still have all the stuff and they will just have paper.

October 7, 2016
[Brett is a co-worker of mine.

He goes on to say that in the case of a default the multinational companies are screwed. This is because our foreign creditors will seize the assets in their countries.—Joe]

Those who need to know already know what the following means. If it’s not crystal clear to you then don’t worry about it. It’s not for you. It’s more fun and games for the NSA:


6 thoughts on “Quote of day—Brett

  1. Something has got to give. That’s certainly a possibility. It would still result in severe economic dislocations and trade disruptions.

    We do have energy and food, so some of the basics are viable. The massive reduction in the financial industries will be tough to deal with, as there won’t be the booming shell game of international finance.

    Jeff B.

  2. I’m not the only one that has wondered why there has been all these “wilderness”, “national monument”, “reserve” and “preserve” areas created, with many of them right on top of vast proven mineral and other natural resources, neatly locking them away from any type of development, and the closing of other mining operations in the US due to bureaucrapic regulation that make it impossible to continue.

    The general cynical opinion is that, when all the financial obligations of the national debt can no longer be “serviced”, a tearful President, flanked by the leaders of the House & Senate, will get on TV and tell the people that the current financial crisis has forced them to repeal all those laws and pass new ones that allow these resources to be sold to the highest bidder (those bidders just happening to be the ones holding the national debt).

  3. friends:

    well, it is interesting.

    i doubt the u.s. will default on its obligations. what is more likely is that the government and private institutions simply won’t pay. the historical solution to this kind of national debt situation is simply for the government to collapse, and a new government to emerge with a different currency. and, the company’s involved will declare insolvency and/or bankruptcy. everyone will have new flags and corporate logo’s on monday morning, open for business.

    and, yes, to the extent that they have assets, foreign corporations will see them seized.

    i don’t see the natural resources being sold to foreign interests. too damned bloody. and, since the reason we are in this mess is gutless chickenshit leaders and politicians, they will not risk this. especially as we still have the guns.

    do the attempts at gun control make any sense to you now?

    john jay

  4. “It has to” — that’s obviously nonsense. For two reasons: current tax revenues are more than ample to pay the debt, by a fair margin. And Federal land holdings (which are 99.9% unconstitutional) could be sold to raise a lot more.

    If the US defaults, it will be because politicians deliberately set out to attack yet one more absolute Constitutional rule. And given the likely benefits default would bring to our enemies, such an act would certainly be treason.

    • That’s true only if interest rates stay low and the government is allowed to roll over its debt. And it only works if Congress actually cuts spending so there is no longer a deficit–which will happen when pigs fly.

      • I’m not sure about the impact of short term debt maturing. A fair amount is long term debt so it’s less of an issue. And yes, of course, if things get tight, additional borrowing has to stop. Refusing further increases of the debt ceiling would be the starting point for that — an action that cannot in itself cause default, no matter what crooked politicians claim in an attempt to scare voters.
        Is the total value of Federal lands greater than the US debt? I suspect so.

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