There has been a bit of news down here latley about the US National Debt Ceiling, and its pending arrival next month. The current debt ceiling is 14.3 trillion dollars.

So apparently the US Congress has two options;

1. Default.

2. Raise the National Debt Ceiling.

Obviously, they will raise the ceiling, as option 1. may not fare well for the US.

My question is, how high can the debt ceiling possibly go before the debt collectors decide to cash in?

They can raise the debt ceiling as high as they want, and the debt collectors will work with them..what are they gonna do? Go to war with us? Invade America?

LMFAO

How about cut off the credit.

If we cut off the credit, we would have to revert back to the gold standard..there isnt enough gold on the planet to push the economy of this size of our population.

What if the lenders cut of credit the US because you can't pay your debts? Didn't you already sell all of your gold?

As far as the "selling off all of the gold" I havent the slightest idea. When it comes to gold and the worlds nations, who knows what they do behind closed doors. I know that there are several ways to invest in gold, and yes you can "buy and hold" actual gold coins, but I do believe there is a law saying that gold is ACTUALLY the property of the US government. What many people do is buy and trade gold "stocks", which are certificates. Or they invest in gold mining operations. Gold is so heavily regulated that it is difficult to get into it, and if you arent well established in it you take a pretty big risk to start.

So I would basically say "no, america hasnt sold all of its gold"

There is more to running the economy on more than just gold. Copper is a good commodity, and one that I deal with most of the time. Its difficult to start off with as well, but I have been doing it for a decade now. When the price hits right, I sell ALL of it and cash in.

Right. Apparently silver is the place to be.

in other words, we little people basically never did and never will have a say on debt, how it is controlled, and how it is done. Only certain big wigs handle that. This is also REGARDLESS of wether it is socialism, communism, or free market..in the end, the established, moneyed families still pull the strings on the puppet we call "economy"

(April 14, 2011 at 8:29 am)reverendjeremiah Wrote: If we cut off the credit, we would have to revert back to the gold standard..there isnt enough gold on the planet to push the economy of this size of our population.

Right. So if the credit was cut off, the US economy would collapse. Military might or not.

(April 14, 2011 at 8:16 am)ib.me.ub Wrote: There has been a bit of news down here latley about the US National Debt Ceiling, and its pending arrival next month. The current debt ceiling is 14.3 trillion dollars.

So apparently the US Congress has two options;

1. Default.

2. Raise the National Debt Ceiling.

Obviously, they will raise the ceiling, as option 1. may not fare well for the US.

My question is, how high can the debt ceiling possibly go before the debt collectors decide to cash in?

They have option 3:

Government doesn't borrow and instead creates bonds (IOUs) that the fed prints a ton of money to buy up.

(April 14, 2011 at 8:24 am)reverendjeremiah Wrote: They can raise the debt ceiling as high as they want, and the debt collectors will work with them..what are they gonna do? Go to war with us? Invade America?

LMFAO

They can raise it as high as they want, but is anyone going to loan them money? Japan is for all intents and purposes out, China buys about 20% of the government bonds it previously has and doesn't loan them anywhere near as much of the dollars they buy, the Fed is the largest purchaser of government debt - Yeah, your government is loaning it's self money!

Your creditors are better off cutting the strings, the less money they loan them the less they will inevitably loose, they've already got next to no chance of recovering their loans, do you think China is going to loan you another trillion dollars when it's probably not going tom get back a fraction of the 1.4 trillion you already owe?