Wednesday, October 9, 2013

US debt default: A simple and easy telling

This is good for my kids to understand. CNN Money has made this so simple for everyone to quickly understand the fallout from the American government going into default, i.e., failing to O$P$.



Of course the US if it defaults is not the same as any nation that had in recent times. Those economies could not pay but this one could if it wanted to. However there would be more than enough frightened people to bring down the house and houses that got fell on.

Warren Buffett and Charlie Munger offer some folksy wisdom about this issue and they are completely right here.


2 comments:

  1. According to "Rules for Radicals", its much more prudent to intimidate, distract, and harass people into submission. This is all being played out of the Saul Alinksy handbook for intimidation tactics. “Forget moral or ethical considerations… The end is what you want, the means is how you get it”. That's what happens when you have power that is overly tilted or concentrated in any single party for too long. Is just a game of bluffs..they will resolve it by the deadline. The intent and purpose is to make Obama looks weak and shed off some of his credibility, nothing more. Petty politics played out on a world stage.

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  2. The twisted part is that the shutdown is being enforced not by a majority of the House of Representatives, but rather by the use of a procedural rule being invoked by Speaker of the House John Boehner, preventing the issue from getting to the floor for an up or down vote. Elemental forces operating in the hidden house.

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