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Potential US Gov't Default: Good or Bad?

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To me it seems that the abruptness of the US defaulting on its loan payments would send the economy into quite a substantial shock, likely worse than what we saw in 2007. Further, that this came about from a plurality of elected officials is even more alarming.

 

However, the US has "defaulted" once before, and it was arguably because of the executive action of even less men. See this article (http://en.wikipedia.org/wiki/Nixon_Shock) for information on how Nixon took the US off of the gold standard in 1971 (maybe to fund a war in Vietnam?).

 

As a radical libertarian, I see the removal of government influence in any industry a welcome thing. However, I am not sure if this is the way to go about it, i.e, through an engineered, short-notice crisis, rather than through the gradual changes and concessions technologies like cryptography have obliged the government to accept.

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There is a study that was done on world corporations it found a concentration of ownership in a bowtie shape funds all going up in around a few hundred families and a little dribbled back down. it is fascinating as the front companies r the usual suspects jpmorgan deutsche bank BoA etal.. u know BoA that bank that forged mortgage documents and never went to jail for it.

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And of course, now that Congress worked for a few days, it is time for them to go on vacation!! Did you see all the pats on the back they gave themselves?

 

Sad really

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The whole "default / debt ceiling" scenario is just a giant farce.

 

Most US debt is owed to themselves, a country with a soverign currency effectively can't "default" since they can print all they like.

 

The debt ceiling gets lifted all the time, but for some reason even now and again they make a big deal over it.  Last one I remember was in 2011 when the world was going to end and Gold/Silver rocketed...and guess what - last minute deal!

 

IMO this can kicking will go on for decades more.

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I think it was extremely misguided of Kramer to get on MSNBC when gold was chomping through 1600, 1700, 1800 in 2011. He gets up there and says "You know at this point, you should just go buy gold."

 

It is amazing how the world markets literally bowed down to a few key members of a 500 person Congress....

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I think it was extremely misguided of Kramer to get on MSNBC when gold was chomping through 1600, 1700, 1800 in 2011. He gets up there and says "You know at this point, you should just go buy gold."

 

It is amazing how the world markets literally bowed down to a few key members of a 500 person Congress....

 

I loved it personally, I bought a fair bit of gold years earlier under $1000 p/oz and managed to sell in the $1800's haha.

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I loved it personally, I bought a fair bit of gold years earlier under $1000 p/oz and managed to sell in the $1800's haha.

 

With how much the US prints money, I'm sure one day those $1800 buyers will see a "return" in that they will get the same amount of cash back that they paid, but who knows how much they can buy with it :)

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I think sometimes in the future, the US Government as well as other countries may likely be involved in the bitcoin industry. Currently, they are acknowledging it and some businesses are even adopting it. At least we now have an idea of how useful and powerful it is, especially if we can maximize its potentials. 

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