US debt default - random rumour

[Malbekh]

Greetings. Just back from holidays to see not much has changed.

Got this in my Inbox from the rumourmongers. Normally I treat them with a certain amount of scepticism, but this one....I don't know, there's something about it that feels right. See what you think.

SPECULATION . . . . Is a U.S. DEBT DEFAULT Coming SOON . . . . . . . . ?



Startling intelligence (from within U.S. State Dept & Embassies): “Some US Embassies worldwide are being advised

to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent

enormous amounts of US cash to purchase currencies from those Govts, quietly. But not English Pounds £’s.

Inside the State Dept there seems to be a sense of sadness & foreboding that ‘something’ is about to happen,

unknown regarding a date — just that within 180 days, but could Be 120-150 days.”



“Panasonic has told their people to be back in Japan by Sept’09.” . . . . . . . . . .!

The suspicion is that another FDR-style “Bank Holiday” of indefinite length, is coming perhaps soon, to let the

Insiders sort-out the bank mess, which (despite their rosy propaganda campaign) is getting more out of their

control every day.



Insiders want to impose new bank rules. Widespread nationalization could result, already under way. It could also

lead to a formal US $ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what ?

The euro ? Doubtful. Gold ? Maybe. Or versus the IMF basket of currencies ? Seems possible—& much in the news

recently. Any kind of Bank Holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario

of letting the $ fall. Such a fall would get the devaluation they want without having to declare it.



In sum, the Insiders want more bank & system control, fewer banks & a lower US $. A Bank Holiday would suit all their

needs. Obviously, You can’t open safety boxes if the banks are closed, so plan accordingly. All this is speculation,

but we have to go with what we’ve got, scraps of info that point to certain possibilities. In any case such a closure will,

come sooner or later, as the worst of the embedded derivatives are still to be purged. We are years away from

resolving them because the controllers don’t want their fingerprints are all over them. PS: during the FDR Bank

Holiday, thousands of banks never reopened; it was a face-saving way of shutting them down. I’d guess the same

would occur today; thousands have little or no net value, loaded with debt, bad mortgages.

[Wakeupcall]

Google the first few lines of it...

[revereie]

Greatest load of crap since I read the last one like this. I loev the way the dollar will be devalued against other currencies by the US authorities but not against the Euro - someone should have another look at their Economics 101.

[Eorna]

The letter may be nonsense but the fact remains that the America is in Debt to its eyeballs and its currency is going to have to devalue, it get itself out of the mess.

[Harmonica]

Seems like Ireland holds upwards on 50 billion of US debt.

[Speedfreak]

The letter may be nonsense but the fact remains that the America is in Debt to its eyeballs and its currency is going to have to devalue, it get itself out of the mess.

Devalue against what currency and what country? What country can afford to allow America do this in the current climate? Will the other country not just devalue its own currency to maintain parity? Please explain to me how America can devalue with regards to both political and economic realities. I don't see it. More so, I'm fairly certain that much of this stuff is just economic propaganda to maintain inflation expectations. This is what the 'tools' in Ben Bernanke's 'armoury' consist of. There is much less danger in creating inflation expectations than in creating real inflation. But it does the same job. ie. Encourage people to spend their money today before it is devalued tomorrow.

[Duth Ealla]

Devalue against what currency and what country? What country can afford to allow America do this in the current climate? Will the other country not just devalue its own currency to maintain parity? Please explain to me how America can devalue with regards to both political and economic realities. I don't see it. More so, I'm fairly certain that much of this stuff is just economic propaganda to maintain inflation expectations. This is what the 'tools' in Ben Bernanke's 'armoury' consist of. There is much less danger in creating inflation expectations than in creating real inflation. But it does the same job. ie. Encourage people to spend their money today before it is devalued tomorrow.

well inflation is a devaluation in a way but there is also asset devaluation and wages devaluation which is what we are at.

[Speedfreak]

well inflation is a devaluation in a way but there is also asset devaluation and wages devaluation which is what we are at.

Of course inflation causes devaluation of the currency. My point is that inflation does not seem to be on the horizon outside of the propaganda. This propaganda is merely reinforcing inflation expectations which has similar effects to real inflation. As long as assets and wages continue to deflate (and it looks like the deflationary spiral has a way to go as yet to me), where can inflation come from? People need to have more to spend for inflation to take hold (in an economic climate where countries cannot afford to let another country devalue their currency ahead of them). Sure the central banks could print money and give it to the banks. But then the banks need to lend out this money for it to have an inflationary effect. And in my experience the last thing people want to do right now is borrow even more. Anyway, the banks are more likely to hang on to this money to fill in all the holes left from their assets deflating and their customers being unable to pay down their debts due to their deflated wages, and worse, lost jobs.

[ballot stuffer]

Seriously guys some of this stuff is Leaving Cert economics.

Why do you comment on something you clearly do not understand?

(Not aimed at everyone in the thread)

[TommyO'Brien]

Seriously guys some of this stuff is Leaving Cert economics.

Why do you comment on something you clearly do not understand?

(Not aimed at everyone in the thread)

Because this is politics.ie! Commenting on something they don't understand is standard here unfortunately.

One poster continues to repeat claims about international law that if suggested in a law class would have his classmates in knots laughing, because of how many basic elementary facts he has wrong.

Other posters describe how the Dáil works in terms that suggest they don't have a clue what a parliament does.

Economic claims are made all the time that anyone a did a business subject at junior cert would not make.

Conspiracy theory fantasies are treated by some posters are fact.

One poster even started a thread wondering when the 'rapture' will happen. Another poster stated as fact some months ago that the 'end of the world' will happen at 9am on the morning of May 21st 2011. (Is that 9am GMT or what time zone? )

So dodgy claims about things people don't have even an elementary understanding off is part of the course here. That's why most mainstream posters have headed off to other sites.