Termyn8or
Posts: 18681
Joined: 11/12/2005
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"If the topic is macrame and someone states 2+2=4 does that mean the math is bulshit because its not part of the topic? "
What he is saying is that this is not how the actual act read. I thought you would come up with it.
The point is that the People and private enterprises for the most part would not deal internationally in gold. This makes them vulnerable to exchange rates.
What many don't understand though, is that payment of the national debt would be quite a challenge using the USD. You would think initially that the removal of that much currency from circulation would increase the dollar's value, but that would only be true domestically. The foreign market would be flooded. If we were relatively self sufficient it might be possible, but with the lack of domestic production for foreign comsumption the books would not balance, to say the least.
What can we supply to balance this ? Wheat ? Two things would happen simultaneously, wheat prices would go down, but a loaf of bread here would go up.
So the Chinese own a pretty good piece of this country, that is a foregone conclusion based on what did happen in 1933, they only difference is that this act gives them the right to invade under intenational law, technically. Despite the fact that they probably actually could do it, which is what scares people, they won't.
With the mess we were already in, it really doesn't make all that much difference. In essence they pawned something they don't own.
So it's quite clear that they are not going to take any steps that will really reduce the debt. This indicates that they have no intention of ever paying it off. That is why I advocate default, but this act would complicate matters. Perhaps it was their intent, in fact it's quite likely that was their intent.
We should've defauklted long ago, when our addiction to foreign money wasn't so strong, it's like a regular psychological addiction that becomes physical, like with some heroin. In other words, it's would've hurt quite a bit to default say forty years ago. But we would have had some chance of recovery after learning to live within our means. Now it's possible that we would not even survive.
Anyone getting a government check could just forget about it, and the multitudes of people who have jobs that depend on the government would be mostly unemployed. That's a hell of alot of people.
I'm beginning to see the situation as hopeless, so perhaps they found out sooner and that's the rationale for their actions. All they can do is postpone the inevitable and it seems to be what they're doing.
T^T
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RE: Feds grant eminent domain as collateral to China fo... - 
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