Korean Job Discussion Forums

[Trevor]

For my entire life, the thought of the USA ever defaulting on any debt was unthinkable enough that, from an actuarial standpoint, U.S. debt obligations have been considered risk-free for over one hundred years by the international financial community.

The hard numbers have always been: U.S. default risk = 0%

That is changing. The world's perception of the U.S. has of course changed in terms of its impressive moral tradition (particularly in light of its repulsive behavior in the middle east) but perhaps much worse, the world's perception of its tradition of financial integrity is also changing rapidly.


http://finance.yahoo.com/news/Dollar-hits-09-low-on-rating-rb-15325222.html?.v=3

What would it mean if the U.S. lost it's triple AAA rating?

[RJjr]

This video from the 2:00 mark until the 5:23 mark is good. http://www.youtube.com/watch?v=hMZVdNX5NUc

[Trevor]

Very scary. He gives a very understandable explanation for why the U.S. government is going to inevitably "print money" in order to pay the trillions of dollars of debt we are amassing in bailouts, loans, and bonds sold to, for instance, China, a country who is going to be very, very pissed off if they get stiffed on their loans to the U.S. government.

Did someone say 'bond wars'?

Nice link. I will keep up with Peter Schiff.

[Kuros]

Yes, and New York City could be hit by a nuclear weapon.

Both scenarios are somewhat likely to happen in the medium-term future.

[djsmnc]

I would hate to see the US lose its AAAAAAAAA rating.




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