Kommander wrote:A one world currency would require a one world government, otherwise you would end up with the current Euro situation all over the world. No thank you.
SeerSavant wrote: I might get some flack for this, but long term, wouldn't it be healthier for a nation state to fail and rebuild from it's mistakes instead of trying to hold on indefinitely?
Moody’s Investors Service, the rating agency, said in February 2012 that it expected Iceland’s economy to grow 2.5 percent this year and next and government debt to fall below 100 percent of gross domestic product in 2013.
But Iceland had a key weapon in its armoury that is not open to the indebted eurozone nations - Iceland had its own currency, the krona. And, when the banks collapsed, the krona did too.
That is a key reason why Reykjavik is now so busy. Prices have effectively halved for most tourists. From being one of the most expensive cities on earth, Reykjavik has become, well, just a bit pricey.
But, as Gunnar, the taxi driver who drove me back from the presidential mansion explained, the collapse in the krona has cost many Icelanders dear.
Virtually everything here is imported and when the currency devalued, prices for everything from cars, to building materials, to food, soared. And at the same time wages fell.
It has been a very painful squeeze, Gunnar says, made considerably worse by the fact that during the boom years many Icelanders were encouraged to take loans in foreign currencies and now they have doubled - sometimes even tripled - in value too.
"I'll never pay my loans back," Gunnar tells me. "Better just to walk away from it - let them have my house."
When faced with the insurmountable and reckless debts, a cascading recession, and the demands of the international political elite for more debt and austerity, the government of Iceland put it to their citizens. In early 2009, with a vote of 90 percent, Icelanders chose to default, leaving foreign investors, bankers and governments, holding much of the losses. The event stands as a stark reminder to the dangers of lending to overly indebted borrowers.
As a result of the default, the Icelandic Krona fell sharply, at one point dropping more than 70 per cent against the euro. A recession of some 5 percent followed. However, as a result of its debt repudiation, the Icelandic economy did not die. In fact, in the ensuing two years, the Icelandic economy has shown signs of improvement. Indeed, Bloomberg has reported that, “Iceland is doing better than anyone could have hoped.”
Doubtless, Iceland did not adopt a costless solution. Their economy now is still a shadow of what it was back in the boom days of 2005 and 2006. However, their default may prove to be far less burdensome socially and politically than the increased debt and austerity that had been encouraged by central banking elites.
In the Spanish case, private non-financial debt dwarfs public sector debt by nearly four times, representing over 220% of GDP. And unlike Italy, Spain’s debt cannot be financed with a high level of domestic savings. It must be borrowed abroad.
SeerSavant wrote: That debt won't go away, and with such a huge amount, along with the public/state debt, I doubt if there is simply enough money to bail them out, if at all?
phil_in_cs wrote:In the US, secured debts from GM and Chrysler were set aside. Those are debts (bonds) that had legal contracts saying "if the bond defaults you get this property." The rules were changed and the bonds defaulted with no transfer of property. The bond holders are suing, but if they get a penny on the dollar I will be amazed.
Valarius wrote:phil_in_cs wrote:In the US, secured debts from GM and Chrysler were set aside. Those are debts (bonds) that had legal contracts saying "if the bond defaults you get this property." The rules were changed and the bonds defaulted with no transfer of property. The bond holders are suing, but if they get a penny on the dollar I will be amazed.
Correct me if I'm wrong but the Department of Defense still drives Humvees, among other vehicles made by General Motors and Chrysler. The President of the United States and Congress will outright nationalize those auto companies before they're allowed to go bankrupt in the middle of two wars, politics be damned. Same with Colt, same with Boeing and Lockheed-Martin, and I believe the same with any company that the DoD has any major strategic reliance on. Military-industrial complex and all that.
Odinsown wrote:Hey Everyone:
Internal debt is debt owed to a person or company inside that country. External debt is debt owed to a forigen person, company, or gov't.
The good choices are already eliminated by prior actions.
Doc Torr wrote:I think I understand. I was thinking of internal debt as something vary different.
On the bailout vs bankruptcy: my dad explained it like this when I was younger, and Argentina was the hot topic. He said that a bailout is like taking out a loan to pay our credit card debts off. It only works if you will be able to pay back that loan, and soon. Otherwise ten years down the road, you owe more money than before, and you still have to file for bankruptcy.
smokinbunta wrote:This is pretty scary... As a start up business owner i REALLY hope we don't go in the drain cause it's tough enough already. And my personal take on prep is for short term local natural disasters not long term national crisis.
smokinbunta wrote:A local member of the KC chapter posted this on FB today.. scary read.. http://www.beaconequity.com/we-are-preparing-for-massive-civil-war-says-dhs-informant-2012-05-03/
It claims highly creditable source....
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