The trigger to our economic destruction: Default

Discussion in 'Economy' started by Big Fitz, Jul 15, 2011.

  1. Big Fitz
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    Big Fitz User Quit *****

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    I've been reading up a little on the Wiemar Republic and have come to the conclusion that default was the key to the collapse of that nation and the inevitable rise of the Nazi party there. After the WR defaulted on it's reparation payments from WW1, it started a panic and inflation that the government tried to print its way out of causing inflation to the tune of 25000% plus over the course of 10 months. Going from 4 to 1 against the dollar to 1 million to 1 against. It was not until they did a 'currency reset' that was worth a TRILLION to one marks was the confidence in the economy restored enough to re-stabilize the nation financially.

    Unfortunately by then, radical groups had used the unrest during that time to seize control. The communists had driven the National Socialist party to control the legislature, the Chancellors kept falling and then came the fascist purge of communism from the Nazi party as that group gained control away from the Leninist style central authority proponents. This of course precipitated what was to become the rise of Hitler, the WW2 and the final solution.

    Remember, default was the trigger.

    Just consider where we sit now. Obama has printed trillions of fiat dollars with nothing to back them through the fed (a policy that has been a mistake through the entire second term of Bush as well). The last time we printed this crazy was under carter who inflated the currency 13% and gave us crazy inflation that when totaled equaled around 130% when it finally calmed down. This is only a small fraction of what we've printed since 04.

    We've been spending on all sorts of programs that inhibit economic growth, not encourage it while demonizing and taxing and badgering everyone who DOES encourage growth. The travel industry, hospitality industry, manufacturing, energy... so many have been demonized by this administration. They're fleeing the nation because A) we've made it easy to do so since Clinton (NAFTA, CAFTA, FTAA and other privileged trade agreements). and B) The government has made it far less profitable to stay here. Not to mention C) we allow foreign nations to flood our market with sub standard and cheaper labor and use it like a slave labor force, driving down the real price of labor in this nation.

    Now, it's sexy to talk about being tough and letting the government default, but the consequences are incredibly bad. There must be four things done to save us from this and they must be done before Aug 2nd. The problem is that we have a game of political brinkmanship going on that will destroy this nation in 12 months if not done.

    1. Cut government spending by trillions. (Keynes is dead... get used to it)
    2. Simplify and lower taxes on all Americans while ending social engineering tax payouts.
    3. Raise the debt limit to prevent default.
    4. Audit the fed and start shutting it down.

    We don't have much choice, and I doubt that our elected officials have the political will do do the smart thing here. So, are you ready for it? I know I'm not yet. I do not wish to live in the era American died by it's own foolish hand. They say there are two ways empires die: By the Sword or by the Worm.
     
  2. iamwhatiseem
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    iamwhatiseem Gold Member

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    As I have been saying for 3 years now - this is NOT and economic downturn.
    This is an economic transformation. America is in a transitional stage from an era of treating debt as income to an era of having to live within our means.
    We will all suffer some NOW. Or our children will suffer GREATLY later.
    In fact - I am telling you with 100% certainty - our government fails us again and once again kicks the problem down the road - we are taking the chance that America permanently loses it's place in the world - and China takes over as the only superpower.
     
  3. Douger
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    Douger BANNED

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    Vote much ?
     
  4. editec
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    editec Mr. Forgot-it-All

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    Comparing our economy to the Wiemar Republic's is a bit of a stretch.
     
  5. Big Fitz
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    Not really. The devastation to our manufacturing sector by abandonment is just as severe as if it was bombed out.
     
  6. uscitizen
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    uscitizen Senior Member

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    Default? We should have let JP Chase and such default and by now we might actually be building back upwards.
     
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  7. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Skip right ovah that Treaty of Versaille did ya?

    Default would be terrible..but it would not lead to economic collapse.

    But it might forever end our dominance as an economic super power.
     
  8. uscitizen
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    uscitizen Senior Member

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    Ahh our corporations have pretty much already taken care of that detail.
     
  9. Big Fitz
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    Pretty much. Just like in 1920. A short sharp recession.
     
  10. Big Fitz
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    and that warms your heart doesn't it?
     

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