August "D-day" for $US?

[Digga]

What do the PH economy illuminati think?

http://uk.reuters.com/article/2011/06/09/uk-usa-fe...

Is this a bit of alarmism and bluster from the St. Louis Federal Reserve Bank President? And perhaps a little ill-advised considering his position and links to the Fed actual?

Fitch Ratings said:

on Wednesday said it believed a debt limit agreement would be reached, but warned it would downgrade the U.S. sovereign ratings to "restricted default" if the government fails to make payments due in August, when the Treasury has warned it will run out of manoeuvres to pay the government's bills.

[Bing o]

The chinese rating agencies were saying the same thing the other day. If the US think they can blow off their creditors without giving up some kind of "security" then they are in for a shock at some point I fear*.







(*Fear = hope)

[Digga]

Collateral you say? Can you honestly see Uncle Sam stumping up the Statue of Liberty or similar?

This could get interesting. I think the Chinese might be about to have a few home truths pointed out. Trade sanctions 'justified' on whatever grounds; human rights, environment, currency manipulation...

[SmoothCriminal]

The amount of usd the Chinese govt hold I doubt we'll see any meaningful trade sanctions by the yanks.

[DonkeyApple]

Digga said:

Collateral you say? Can you honestly see Uncle Sam stumping up the Statue of Liberty or similar?

This could get interesting. I think the Chinese might be about to have a few home truths pointed out. Trade sanctions 'justified' on whatever grounds; human rights, environment, currency manipulation...

The Louisianna Purchase Sale and Leaseback?

[jshell]

SmoothCriminal said:

The amount of usd the Chinese govt hold I doubt we'll see any meaningful trade sanctions by the yanks.

Exactly.

[jammy_basturd]

I maybe well off the mark, but I heard we (the Brits) actually hold a huge amount of US debt?

[Steffan]

jammy_basturd said:

I maybe well off the mark, but I heard we (the Brits) actually hold a huge amount of US debt?

This link may help. We certainly hold a fair wedge.


http://www.treasury.gov/resource-center/data-chart...

[caymanjames]

Well if they do default then we should see a dramatic decrease in the value of the dollar so could be a good time to take the kids to disney

It won't happen though, as already mentioned china holds too much us currency, so they won't let it

Edited by caymanjames on Thursday 9th June 22:18

[ge0rge]

Ahh good old Fiat currencys eh, the end is nigh for the $!?!

[Zod]

jshell said:

SmoothCriminal said:

The amount of usd the Chinese govt hold I doubt we'll see any meaningful trade sanctions by the yanks.

Exactly.

What can the Chinese do? They can't offload it all and they'll lose money on whatever they do offload. They haven't been terribly clever in amassing this holding.

[Digga]

Zod said:

What can the Chinese do? They can't offload it all and they'll lose money on whatever they do offload. They haven't been terribly clever in amassing this holding.

Precisely my thoughts - what can the Chinese possibly do. They are damned if they let the $US deflate (because it erodes their capital) and damned if they blow the whistle on the Fed because, guess what? Yep, that way the dollar will really plunge.

They obviously aren't schollars of early c20 French economic history: http://www.voxeu.org/index.php?q=node/3490

[anonymous-user]

Germany turned to war to get out of it debts..

[Digga]

black pipebandit said:

Germany turned to war to get out of it debts..

Don't worry love, they don't have any debts this time.

China has to get past Russia to get at us and, well, you just wouldn't pick a straight military fight with them, would you?