The United States is the largest borrower in the world. The US national debt has already exceeded the level of 11 trillion dollars as of the beginning of 2009 and continues to grow like an avalanche. Experts say that the USA has only two ways to solve the problem: to either declare default or trigger off a war.
According to experts’ estimates, the probability of default on US treasury bonds is very high at the moment. The rumors are not new at all. Moreover, experts say that the USA has already started to work on an opportunity to refuse from the dollar in order to avoid debt payments.
Dmitry Abzalov, an expert with the Center for Russia ’s Political Conjuncture, said that governments currently take on the debts of corporations. “The corporate debts crisis thus becomes the crisis of governmental debts. The US debt in the beginning of 2009 amounted to $10.6 trillion. Taking into consideration the current deficit budget of the United States, as well as the prospects for the deficit of the budget during the current year, it becomes clear that the US Treasury bond market is based on no alternative whatsoever. There is no other way for investors to invest their funds with treasury bonds being the only option,” the expert told Bigness.ru.
When the world economy recovers, investors will realize that there are plenty of other opportunities for investments, the European bonds, for example (if the European economy recovers from the crisis too, of course), or the bonds of developing countries.
“The pyramid of US bonds will collapse in this case. The debt percentage grows every day, which makes the USA borrow more and more on a daily basis. America will have no chances to pay off the debt,” the expert said.
Inga Foksha, an analyst with Aton Investment Company, agrees that the US default is quite possible, although she is certain that it will not happen unless the world finds an alternative to the US dollar. The dollar will collapse immediately in case of default, which is absolutely unacceptable, because 63 percent of world reserves are saved in dollars. Their collapse will trigger the global economic collapse.
“Technically, the default of the United States may occur during three or five years, although it is too early to say that it could be possible. The USA can print new dollars to pay their debts with them,” she said.
Nevertheless, the US government bonds still enjoy investors’ support and are still considered a risk-free investment.
Dmitry Abzalov believes that the current situation with the US national debt may end with a new war. The war will destroy excessive liquidity and the current debt.
“The war in Iraq began to delay the US crisis, which started brewing in the US economy at the end of 2000,” he said.
The Americans have been trying to raise their economy with the help of military actions for decades, since the Great Depression of the 1930s. A war boosts the nation’s industry, even if a recovery is based on defense orders.
March 23rd, 2009 at 6:00 am
They don’t have to do either, they’ll inflate their way out of the debt and obligations.
Edmond Dantes Reply:
March 23rd, 2009 at 7:27 am
The Administration can try…but we can’t borrow and spend our way to prosperity.
March 23rd, 2009 at 6:27 am
This article was posted last week by some wacky Russian on an Anti American Russian web site called
http://english.pravda.ru/
They hate us!
a Reply:
March 23rd, 2009 at 11:05 am
Pravda is not some “Anti American Russian web site”. It is a major mainstream newspaper in Russia. It would be the same as calling NYTimes.com “some anti Russian web site”. Doesn’t make any sense…
KC In MS Reply:
March 23rd, 2009 at 12:46 pm
They hate us commoners far less that than the New York Times editorial board hates us.
March 23rd, 2009 at 7:27 am
There are MORE options,
1. Revolution by morning
2. Revolution by Noon
3. Revolution by Evening, Well, I guess these are the only other options left to “Save” our Republic.
March 23rd, 2009 at 7:58 am
I have been sensing that another ‘Revolutinary War” is coming to America….these tea parties being held…it’s just a matter of time….someone or huge groups of someones will SNAP and it’s going to be civil war in the streets. Enter martial law….lockdown on all fronts and America as we know it is DONE!
March 23rd, 2009 at 9:29 am
Maybe “CON”~~~GRESS can drink its way out of the mess.
http://pencildicksvstheworld.b.....t-bar.html
March 23rd, 2009 at 9:56 am
There is a storm coming, it is on the horizon.
March 23rd, 2009 at 11:09 am
To better understand the corruption humanity is going through, it will be beneficial to read the Quran. Read it for yourself and make up your own mind. Dont be manipulated.
http://www.AllahsQuran.com (listen and/or read the Quran)
http://www.BibleIslam.com (who was Jesus peace be upon him?)
http://www.ShareIslam.com (search about Islam)
http://www.WhatsIslam.com (basic audio introduction about Islam)
http://www.IslamsWomen.com (70% of new muslims in the west are women,why?)
http://www.ScienceIslam.com (Science proves Quran to be God’s word)
http://www.ChatIslam.com (join free online classes and ask questions about Islam)
Peace, mercy and blessings of God be upon you all.
Alexandra Reply:
March 23rd, 2009 at 11:34 am
Nope, sorry, I prefer the King James Bible. No contradictions. Jesus is my Saviour. He is alive and Muhammad is dead.
Especially read the book of Revelation.
March 23rd, 2009 at 3:56 pm
We’re drowning in growing debt that can never be repaid which spells the end of the Union and you are arguing over whose cult has a more compelling mythology!?
March 23rd, 2009 at 4:23 pm
“Another war”… that explains why US troops will stay there at least 23 months more.
March 23rd, 2009 at 4:25 pm
Be sure to disregard bullshit Russian news stories.
March 23rd, 2009 at 4:28 pm
Thats only half the problem. Our good old boys have moved AII heavy industry East over the last 20 years to lower corporate labor costs. Now, Ironically, we are the leading exporters of fertilizer which means that most Americans can forget about jobs for the next 20 yrs, if ever. The fix is in, or as they say in France “fate a compli.” About 18% of the population that work for the Fed. or the Military Industrial Complex will survive economically, the rest are probably going to eat toast with their new third world buddies. Yes sir, its going to bottom out at the bottom of the Grand Canyon and then cut a deeper trench. Too many Americans sleeping too long!?
March 23rd, 2009 at 4:42 pm
His Numbers are way off 63 TRILLION is what I’ve seen,war on bankers will be great I’m ready!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
March 23rd, 2009 at 6:51 pm
Most likely they are going to trigger a war, just like they did in the 30’s with Hitler and Germany. World War III is coming. Be ready. Is your soul prepared to die? MINE IS and why because I learned about who and what I am from spirituality and the REAL new age, but most of you suckers that believe all the disinfo on the new age, will not be ready and have no IDEA who you are.
Wake up fools. You are not the body. You are spirit/soul that reincarnates lifetime after lifetime. But hey if most people are too stupid to learn the deeper truth, then they will just suffer lifetime after lifetime after lifetime after lifetime. Stupid suckers.
March 23rd, 2009 at 7:11 pm
ALEX ISN’T GIVING YOU THE WHOLE TRUTH. THE INFOWAR IS PART OF A BROADER SPIRITUAL WAR! ITS GOOD VS. EVIL PLAIN AND SIMPLE AND INVOLVES INTRA-DIMENSIONAL BEINGS. WE ARE BEING HELPED BY A BENEVOLENT GROUP INTERESTED IN OUR ASCENTION INTO 2012. THE WORLD IS CHANGING AND IT IS AN EXCITING TIME. BUT ITS TIME TO WAKE TO THIS FACT. VISIT OUR SITE TO FIND OUR MORE!
http://www.thegrandawakening.com
March 23rd, 2009 at 7:11 pm
WE ARE HEADING INTO THE MUCH PREDICTED 2012 END OF TIMES. IT IS A SPIRITUAL WAR. NOT TO WORRY, WE DO HAVE HELP FROM ABOVE FROM A BENEVOLENT FEDERATION OF PLANETS WHO ARE TRYING TO TURN THINGS AROUND. OUR GOVERNMENT IS LYING TO US THERE TOO! LEARN THE TRUTH ABOUT THE SPIRITUAL WAR!!! http://www.thegrandawakening.com
Carl M. Reply:
March 24th, 2009 at 3:15 am
Michael
But how do we know for sure the Federation of Planets is benevolent? They could say they are benevolent but in fact be an Intergalactic Empire seeking the enslavement of the Human race for their plans to use us as an abundant source of slave labor to build their Intergalactic fleet.
Just look at the United States Government. It masquerades itself as “democratic”, “freedom loving”, “pro free speech”. But in reality they represent a Minority Elite who’s only goal is to establish themselves as the only leaders in the whole World. And use everyone else to maintain their wealthy and privileged lifestyles.
March 24th, 2009 at 3:35 am
As for the article. Everyone today has their opinion.
Starting wars comes “naturally” for the Elite in the US. Even against countries that thought they were allies of the United States(and had the approval of the US Government like Iraq against Kuwait). When the Elite don’t have to lead men(and women) on the battlefield they don’t care about the negative consequences. As long as in the end they will control local industries and make money from Imperialism and 21st century Colonialism.
Perhaps a break up of the United States will be the best way to destabilize the power of the Oligarchy(the true form of the Government of the United States).
March 24th, 2009 at 7:29 am
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March 24th, 2009 at 10:04 pm
This is going to get interesting.