Secret Squirrel has noticed the recent great suckings and blowings in America, sucking and blowing by well exercised wind bags, sucking and blowing about firstly, the debts of other nations and how defaults would bankrupt them,destroy them, et all,and veiled threats made to them of their inability to pay debts,bankruptcy etc etc etc, nations such as Spain, Iceland, Italy, Greece. Well it seems it is a case of The Great Black Kettle, calling the tiny pot,black.We now see an America, emblackened, emblackened with respect to IT now defaulting on it's debt, but we see a different outcome drawn for America,by Americans,specifically it's government, which made the admonishments and threats to the other nations, concerning their debts,et all, strangely enough.
The National Debt has Risen to $13.665 Trillion Under President Obama ... "And then we've got to pay interest to China or whoever else is willing to buy our debt,".interesting words, buy our debt.so what if no one wishes to buy our debt.Obama has just days before his crisis emerged, chastised Spain,Italy,Ireland, Greece about their debt saying he didn't buy their debt, and wouldn't tolerate, or whatever, their default..........well they didn't default,they haven't they won't,they were bailed out by France,Germany,England, but it seems nobody seems to buy Obama, and his plan,nobody wants to bail him out,for whatever reason, and why,can we guess.Does it matter.Do you mind?What is mind? No matter. What is matter? Never mind.The government's authority to borrow more money has expired, and the US risks a default on its debt if Congress and the White House cannot agree a plan by next Tuesday,to allow the government of the people of the United States, to borrow money,borrow from where who can say,borrow from whom, borrow from what,borrow money which doesn't exist, or doesn't yet exist.What started the borrowing crisis, and what happens to the US and the world economy if it cannot be resolved?
The US government has a legal limit on how much debt it can run up – $14.3tn at present. It reached the cap in May, which means it cannot borrow any more money.Well now, the US is in debt exactly to who and whom? To what nations?Shortly before this "crisis",Obama was yelling and screaming at,and threatening, Ireland,Spain,Italy,Greece on being in debt, and possibly defaulting on THEIR debts.So, a few days later, Obama's America debt problem arose. Now, who's in debt to whom? Well, nations are in debt to other nations, in sum toto their imports exceed their exports,however this oddity seems to be the case for all
nations, so what goes around comes around, everybody is in debt to everybody else, and everybody else, in Europe for example, solves their problem by borrowing from other nations at any particular given time, for example, Spain, Ireland, Italy, Greece ,borrow from nations such as England,France,Germany, in Europe, as in a closed circuit.
Well now, America is in similarity to Europe,but we must regard the States as nation states, therfore Obama must find a rich state to borrow from.Sadly, this may not be the case, and now what?Will America borrow from France,Germany,England...seemingly no as they claim to be over extended at
this point, perhaps thence to compound America's problem,in the light of global politics,so that solution,the number one solution, is out of the picture.
But is it a problem?Again, to whom exactly is America in debt to.Pondering this out, each nation being in debt to each other nation, we find that America's problem is simply itself,it is it's own problemHow did America pay it's debts in the past?
Interestingly they have a different solution to that of Europe, rather America is in debt to itself, as such it simply has to raise it's own debt limit,agaian, as it has in the past, and do what it always does.namely it prints up Treasury Certificates
for x billions or whatever is necessary, and it goes to the Treasury Department, which then takes the certificates, puts them away, and prints up the required currency versus and against the Treasury Certificates they were given. And so the problem is solve,that is the solution,the number two solution, it has been applied and has worked successfully for every other President before him.
So why then cannot Obama do the same thing?He seems to understand he must raise America's debt ceiling,but that's where Obama gets stuck.Underpants gnomes are also stuck, underpants gnomes are those who come in the night when you sleep,and steal your underpants. They have the understanding that this will lead to profit, but as yet they have not figured out how to make this profit.Studying
their problem, the missing step they haven't yet fathomed is to sell said stolen underpants and hence make a profit. Here too Obama is stuck, he has no idea how to make America turn a profit. In the life of the world, Obama (America), has invaded foreign lands, the Arab lands,which contain oil,but that's where he's stuck, how to turn a massive profit? Well, now, as with the underpants gnomes, the trick is to turn a profit by selling what he has, they have underpants they have procurred and must said said underpants if they wish to make a profit. Obama has a pile of oil(versus the underpants gnomes underpants), but he doesn't realize that he must now sell this oil he has procurred and hence make a profit. Problem solved. That is the other solution to things,the number three solution,but again, Obama does not realize this.He has happily invaded Arab lands, but is stuck in a now what condition.
So how has America been keeping afloat since then?Well,Treasury secretary Tim Geithner managed to stave off default by suspending payments into two federal pension funds, pledging to repay the money once Congress has approved a higher debt ceiling.This is wonderful as a solution, it is THE solution, the immediate solution.However, we hit a snag there in this reasoning, the logic is faulty, it will work, but it won't,for example, why can he not simply do this now,as in repay the money now...quite simply he hasn't got the money since he spent it,and won't have it then either,regardless, as where can this money which doesn't thence exist,come from.Well, pretzel logic dictates that it can't, therefor this solution, the number four solution, won't work,it can't it doesn't make sense.But then does government make sense,or is there no rhyme nor reason to politics,no sense nor sensibility.
There is another solution, the government can borrow the funds, provided Congress agrees,should all agree how to do it,quite simply, The Congress, and The Senate,Congress is Republican, the Senate Democrat, but from where will America borrow the funds that it can't repay to pay it's debts?Again, so Congress agrees,but from where can he borrow the money from which he can't get the money without the permission of Congress,neither they nor he, nor we, can ever possibly know,beyond the fact he can't ever pay it back again, so it's all gone from wherever it came from and they'll never see the money that they never had in the first place.All of which only serves to pint out that there is a problem existant because money at present doesn't exist. Curious that Europe has no evident problem that Obama has, but then Europe doesn't have Obama.What happens if a deal can't be agreed by Tuesday,which happens to be August 2nd,2011?
The US treasury estimates that funds will dry up by then, which would leave the government unable to pay its bills – such as social security payments, Medicare, military salaries and debt interest payments. The Republicans claim that the government would get by for a few more days after 2 August, but there is no doubt that the two sides need to agree a deal soon.Or at least they claim this will solve the problem, but this doesn't explain from where the money that they don't have will come from,nor what basis said currency then has.Some analysts said however that recent strong tax receipts meant the United States could have
up to two extra weeks of cushion after August 2, offering a possible temporary reprieve before it could be forced to default.So the world's richest nation default on its debt, with supposedly ruinous global results,because it has not been paying
its debts whilst they also have not been paying their debts,all merely acumulating yet more debts.Wonderful.So what would happen if the US defaults....‘Payments’ default would be accompanied by ‘default’ ratings of the US government or some of its debt issues by the major credit rating agencies. A downgrade of the short-term rating of the US government to ‘default’ would be highly likely, while the nature of the downgrade for the long-term debt looks more uncertain.Increases in US rates at all points of the curve are likely to be relatively large and to persist for years. The dollar could drop sharply and major disruption in the US and global financial system could cause private lending and borrowing rates to rise even more rapidly than the sovereign rates. Financial conditions could worsen sharply and interbank, credit and other funding markets are likely to ‘freeze’. As a result of the financial turmoil, the negative wealth effects, the increases in costs of capital and the substantial hit to sentiment, the US dives into a deep recession, taking the rest of the world with it,because they're all in debt themselves.So it's all a question of debt, isn't it.Well let's look at the national debt list by nations...........as a percentage of their GDP....let's start, in first place is Japan, with a percentile of 225.80 percent of their GDP......
1 Japan
225.80 percentile debt of GDP
2 Saint Kitts and Nevis
185.00
3 Lebanon
150.70
4 Zimbabwe
149.00
5 Greece
144.00
6 Iceland
123.80
7 Jamaica
123.20
8 Italy
118.10
9 Singapore
102.40
10 Belgium
98.60
11 Ireland
94.20
12 Sudan
94.20
13 Sri Lanka
86.70
14 France
83.50
15 Portugal
83.20
16 Egypt
80.50
17 Belize
80.00
18 Hungary
79.60
19 Germany
78.80
20 Dominica
78.00
21 Nicaragua
78.00
22 Israel
77.30
23 United Kingdom
76.50
24 Malta
72.60
25 Austria
70.40
26 Netherlands
64.60
27 Spain
63.40
28 Cote d’Ivoire
63.30
29 Jordan
61.40
30 Cyprus
61.10
31 Brazil
60.80
32 Mauritius
60.50
33 Ghana
59.90
34 World
59.30
35 Albania
59.30
36 Bahrain
59.20
37 United States
58.90
38 Seychelles
58.80
39 Morocco
58.20
40 Bhutan
57.80
41 Guyana
57.00
42 Vietnam
56.70
43 Philippines
56.50
44 Uruguay
56.00
45 India
55.90
46 Croatia
55.00
47 El Salvador
55.00
48 Poland
53.60
49 Malaysia
53.10
50 Kenya
50.90
51 Argentina
50.30
52 Pakistan
49.90
53 Tunisia
49.50
54 Turkey
48.10
55 Norway
47.70
56 Denmark
46.60
57 Aruba
46.30
58 Latvia
46.20
59 Finland
45.40
60 Colombia
44.80
61 United Arab Emirates
44.60
62 Costa Rica
42.40
63 Thailand
42.30
64 Dominican Republic
41.70
65 Mexico
41.50
66 Serbia
41.50
67 Slovakia
41.00
68 Mozambique
40.80
69 Sweden
40.80
70 Malawi
40.40
71 Czech Republic
40.00
72 Panama
40.00
73 Bolivia
39.70
74 Bangladesh
39.30
75 Ethiopia
39.30
76 Yemen
39.10
77 Bosnia and Herzegovina
39.00
78 Ukraine
38.40
79 Switzerland
38.20
80 Montenegro
38.00
81 Lithuania
36.70
82 Slovenia
35.50
83 Romania
34.80
84 Cuba
34.40
85 Macedonia
34.20
86 Canada
34.00
87 Taiwan
33.90
88 South Africa
33.20
89 Senegal
32.10
90 Syria
29.80
91 Guatemala
29.60
92 Papua New Guinea
27.80
93 Indonesia
26.40
94 Trinidad and Tobago
26.40
95 Honduras
26.10
96 Gabon
25.80
97 Algeria
25.70
98 New Zealand
25.50
99 Venezuela
25.50
100 Moldova
25.00
101 Zambia
24.10
102 Korea, South
23.70
103 Peru
23.60
104 Tanzania
23.30
105 Ecuador
23.20
106 Paraguay
22.80
107 Botswana
22.60
108 Australia
22.40
109 Uganda
20.40
110 Angola
20.30
111 Namibia
20.00
112 Hong Kong
18.20
113 China
17.50
114 Saudi Arabia
16.70
115 Bulgaria
16.20
116 Iran
16.20
117 Luxembourg
16.20
118 Kazakhstan
16.20
119 Nigeria
13.40
120 Kuwait
12.60
121 Qatar
10.30
122 Cameroon
9.60
123 Russia
9.50
124 Uzbekistan
9.00
125 Estonia
7.70
126 Gibraltar
7.50
127 Chile
6.20
128 Wallis and Futuna
5.60
.
129 Azerbaijan
4.60
130 Oman
4.40
131 Equatorial Guinea
4.10
132 Libya
3.30
America is at 58 percentile of it's GDP,made up of 50 states, Europe is at a similar cumulative percentile of GDP of the sum total of 27 nations in the European Union,collectively.China's is only 17.50 percent,Australia only 22.40,not far ahead of them.I must snicker at this, Libya under Khadafi before his problems, had Libya at only 3.30 percentil of GDP debt. So, how are they collectively able to pay their debts,and why aren't they in the position of defaulting on their debts?That is the other nations,who don't seem to have the problem America is having,seemingly being able to solve their economic crisis in intelligent fashion?Now all nations continually add to their national debt, in short, their national debt keeps rising,each year,rather than falling, and so too has America's.But Obama can't solve his national debt problem, the problem of America's national debt.
Now let's consdier what the probelm is,the national debt, and how it will be solved, merely by raising the debt ceiling itself.........according to....
http://politisite.com/2011/07/25/can-president-obama-use-14th-amendment-to-raise-the-debt-ceiling/
......... Although the Fourteenth Amendment to the Constitution does not say specifically that the President has the power to raise the debt limit, there is a lot of talk recently that he may try to do so. The Amendment says in Section 4.
“The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.” And Section 5. “The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.”Even so President Clinton said that he would use the Amendment to raise the debt Limit bypassing Congress. The ability for the President to bypass Congress in an Amendment that gives the President certain powers but not in section 4..............................
Clinton said he believed a deal would be struck before August 2, but if he were in charge, and both sides failed to reach an agreement, he would simply raise the debt ceiling himself using powers granted under the 14th amendment of the Constitution. The
amendment says that the validity of the public debt shall not be questioned. Clinton said he’d “force the courts to stop
me.”...........So that's what Obama can try to do,IF? Congress allows him and says he can do it? Or not if they don't?So what now,what was the other attempt.....The latest round of bargaining began on Monday when Mr Boehner and Senate Democrats offered competing plans to raise the debt limit and cut spending.The plans differed in size and scope, and neither would raise new tax revenue - a red line for Republicans.Mr Boehner's plan would also require another debt limit agreement in about six months, something Mr Obama has publicly declared he will not accept.So,let me get this straight, all they have to do, is agree,and everything will be all right. So, why can they not agree, and will they not agree, for the good of the nation adn the people of the United States,they just have to agree,and the required debt ceiling will be raised, and the money borrowed from where ever in la la, or fantasy land, or never,never land and everything will be right and well..go figure,that's the cure.......there's more.........seems America defaulting really only affects it's credit rating, versus Obama's threats,blustering and blundering with respect to Spain,Italy,Ireland or Greece defaulting would affect THEM to massive extents, but not the same for America, America defaulting has now been pushed to a ridiculous credit rating,borrowing ability shift downwards.....curious things not the same as his statements about their debt
problem,defaulting..........bankruptcy.......so now the plot thickens,read on...
http://www.telegraph.co.uk/news/worldnews/us-politics/8672159/US-debt-crisis-Republican-budget-proposal-passed-in-House-of-Representatives.html
US debt crisis: Republican budget proposal passed in House of Representatives
The House of Representatives on Friday night passed a bill designed to end the looming US debt crisis, but amid high level warnings that Congress was "playing with fire", it faced almost certain defeat in the Senate.
By Alex Spillius, Washington
Hours after President Barack Obama called for Republicans and Democrats to put party politics aside, the Republican-controlled House scraped through a bill by just eight votes, even though Democrats, who control the Senate, had warned that it was unacceptable and "extremist".John Boehner, the Republican Speaker of the House, gave an impassioned appeal to his colleagues in the House to approve his plan, slamming his fist on the podium several times."I stuck my neck out a mile to get an agreement with the president of the United States," he said, referring to failed negotiations with Mr Obama earlier this month"My colleagues, I can tell you I have worked with the president and the administration since the beginning of this year to avoid being in this spot," he added. "A lot of people in this town can never say yes."With the vote out of the way after two days of high drama, negotiations immediately started on a compromise bill that would be started in the Senate by Democrats and then go back to the House.It might then pick up enough votes across both parties to pass before Tuesday's deadline to raise the so-called debt ceiling.There is a however real danger that Congress will not meet the deadline set by the US Treasury, which could mean that the US fails to pay its creditors for the first time.The government may also fail to fund state pensions, student loans, military salaries, contracts with businesses and a gamut of routine payments.World leaders have warned of the dire consequences for the global economy of a US default.There has been dismay at the dysfunction in Washington, with World Bank President Robert Zoellick saying the United States was "playing with fire"."Whatever the logic about the tactics, it's a very dangerous environment," he told a meeting of the Society for International Development."To be blunt, to have a debt default in the United States would not only be a financial calamity but should be an embarrassment for every American" he said.America's largest foreign creditor, China, has repeatedly urged Washington to protect its dollar investments and its state-run news agency said the US had been "kidnapped" by "dangerously irresponsible" politics.Speaking earlier at the White House, Mr Obama warned that the country's top credit rating was at risk after leading credit agencies said they were likely to issue a downgrade."If we don't do that, if we don't come to an agreement, we could lose our country's triple-A credit rating, not because we didn't have the capacity to pay our bills – we do – but because we didn't have
a triple-A political system to match our triple-A credit rating," he said."There are a lot of crises in the world that we can't always predict or avoid – hurricanes, earthquakes, tornadoes, terrorist attacks. This isn't one of those crises. The power to solve this is in our hands," he said.Opponents of a deal have accused the administration of scare tactics and questioned if the consequences of failing to raise the debt ceiling would be so dire after all.
Here ends to informational epistle from the Daily Telegraph.
So what happened in The Senate with the Republican bill? Well, the Democrats in the Senate, voted..........No.So now the Democrats want America to default?Seemingly so.That's politics?Suicidal politics?The politics of Russian roulette with ONE bullet removed?Curious,through the great embuggeration that is American politics,now the Democrats seem to want to allow America to Default,Obama's Democrats...Crisis?What crisis? It seems it's all so irrelevant with respect to America,and all is as it seems,for America,so we don't mind.Do you mind?What is mind? No matter. What is matter?Does it matter?Never mind.
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