THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
THE SPECTER OF THE AMERICAN GOVERNMENT DECLARING BANKRUPTCY GETS TROTTED OUT PARTICULARLY OFTEN ANYTIME THERE'S A CHANGE IN THE MAJORITY PARTY, BECAUSE WE HAVE BEEN TAUGHT FOR DECADES WHAT A LARGE SCARY NUMBER AMERICA'S NATIONAL DEBT IS, THE POPULACE FEARS THAT, THE TIME WHEN IT CAUSES ANOTHER GREAT DEPRESSION, WILL COME ANY MOMENTS.
IT COULDN'T EVEN BE SAID TO CATCH US BY SURPRISE SINCE THERE WERE MANY ALARMISTS, THAT WOULD BE ABLE TO TELL US, THAT THEY TOLD US SO.
WELL HERETOFORE TENSE WE'RE NOT ALARMISTS, WE ARE HERE TO TELL YOU WHAT WOULD ACTUALLY HAPPEN IN THE EVENT OF THE USA DECLARING BANKRUPTCY FOR THE FIRST TIME SINCE 1933. AND WELL TO BE HONEST THE PROSPECT
IT ISN'T VERY PRETTY BUT, WE'LL ALSO TELL YOU WHY CERTAIN ASPECTS OF IT, BY THEIR NATURE ENSURE IT'S VERY UNLIKELY CERTAINLY THOUGH STRANGER THINGS HAVE HAPPENED AFTER ALL OTHER NATIONS HAVE EXPERIENCED
IT HUNDREDS OF TIMES IN MODERN HISTORY AND THEIR EXPERIENCES ARE THE EVIDENCE THAT WE WILL BE USING FOR THIS VIDEO....
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
"10. MASSIVE SHORTAGES ACROSS THE BOARD"
IN 2001 ARGENTINA DECLARED BANKRUPTCY BROUGHT ON BY THE FACT, IT'S GOVERNMENT HAD ATTEMPTED TO MATCH THE VALUE OF ITS PESOS WITH THE US DOLLAR , THE IMPACT WENT FAR BEYOND THE IMMEDIATE IMPACT ON THEIR
CURRENCY AND THEIR ACCOUNTS. THIS MEANT THAT GAS STATIONS OFTEN NO LONGER HAD FUEL TO SELL IT MEANT THAT GROCERY STORES RAN OUT OF FOOD. AFTER ALL WHAT COMPANY WOULD SHIP GOODS TO REGIONS FILLED WITH LITTLE TO NO MONEY JUST PLENTY OF DESPERATION.
YOU MIGHT BE INCLINED TO BELIEVE THAT AMERICA IS A RESOURCE-RICH COUNTRY THAT CAN SUSTAIN ITSELF OF HOME PRODUCED GOODS, ESPECIALLY IF YOU HAVE AN ANTIQUE GLOBALIST AMERICA FIRST OUTLOOK. BUT AMERICA IMPORTS VASTLY MORE RESOURCES, THAN IT EXPORT ROUGHLY 50% MORE AND NOT FOR NOTHING.
CONSIDERING THAT BANKRUPTCY ALSO COMES WITH MASSIVE INFLATION MANY COMMUNITIES WILL BE FULL OF PEOPLE WHOSE MONEY NO LONGER HAS ENOUGH VALUE TO MAKE SENDING RESOURCES TO THEM, WORTH IT FOR COMPANIES.
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
NUMBER "9" BANKS WILL EMPTY OUT"
BACK IN 1933 DURING THE GREAT DEPRESSION BANKS WERE FORCED TO CLOSE AS THEY WERE REVIEWED FOR SOLVENCY AS A RESULT THOUSANDS OF LOCAL BANKS WERE CLOSED AND SAVINGS WENT WITH THEM AS PATRONS RUSHED TO THEM TO DRAW THEIR MONEY. IT IS WORTH NOTING HOWEVER HERE BUT AT THE TIME, THERE
WAS AN OVERABUNDANCE OF BANKS, SO THAT THERE WAS ONE FOR EVERY THOUSAND PEOPLE. SINCE THEN WE HAVE HAD A SIMILAR EVENT HAPPEN IN 2008, WHEN THE US GOVERNMENT HAD TO BAIL OUT ITS LARGEST NATIONAL BANKS HOWEVER. HOW EVER AS OF 2016 THE FEDERAL RESERVE REPORTED THAT THE BANKS HAD ONLY GROWN LARGER SINCE THEIR BAILOUT, NEARLY A DECADE EARLIER. IN THE EVENT OF THE GOVERNMENT DECLARING BANKRUPTCY THERE WILL BE
NO ONE TODAY TO BAIL OUT ALL THE BANKS OUT, SO THEN THE CLOSINGS WOULD BE FAR LARGER IN IMPACT AND IN TERMS OF LOST SAVINGS. IT WOULD ALSO BE PARTICULARLY EMBARRASSING CASE OF NOT BEING ABLE TO LEARN FROM
A MISTAKE.
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
"NUMBER 8" CHINESE CURRENCY WILL COLLAPSE TOO"
ITS SCARY FOR MANY AMERICANS TO THINK THAT AMERICA OWES 1.2 TRILLION DOLLARS TO CHINA AS OF AUGUST 2017 INDEED THAT WAS USED AS A CAMPAIGN POINT DURING THE 2016 PRESIDENTIAL RACE. BUT ACTUALLY IN SOMEWHAT TWISTED
WAY. IT'S THE RESULT OF A POLICY, THAT KEEPS AMERICA AND CHINA STRONG.
CHINA NEEDS TO KEEP IT'S CURRENCY, THE YUAN LOWER THAN THE US DOLLAR BECAUSE KEEPING THEIR PRODUCTS AFFORDABLE IN AMERICA KEEPS THEIR MANUFACTURING PROFITABLE. THUS THEY HAVE A FIXED EXCHANGE RATE WITH THE US DOLLAR, IF THE US DOLLAR COLLAPSES THEN THE YUAN PLUMMETS IN VALUE, IN ORDER TO CONTINUE STAYING AT A FIXED RATE DURING AMERICAN TRADE OR ESSENTIALLY THEY WILL LOSE VITAL DEMANDS WHICH KEEPS THEIR MANUFACTURING CENTERS OPEN. SO IF YOU WERE EVER WORRIED THAT THE CHINESE GOVERNMENT WOULD USE THIS DEAD LEVERAGE TO SINK THE US ECONOMY. YOU CAN BE ASSURED IT WOULD ONLY NE SLIGHTLY LESS SUICIDAL FOR THEM, THAN IT WOULD BE FOR NORTH KOREA TO USE ONE OF THEIR NUCLEAR FAKE WEAPONS.
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
NUMBER "7" BARTER ECONOMIES WILL BE READY"
NOTHING WOULD HELP THE AVERAGE PERSON REMEMBER THAT MONEY IS MERELY A MEDIUM OF EXCHANGE WITH NO INTRINSIC VALUE, MORE THAN IF THEY SUDDENLY HAD NONE AND NO RELIABLE MEANS OF GETTING IT. SUCH WAS THE FATE OF MUCH OF THE AMERICAN PUBLIC IN 2007, WHEN THE NATION WAS ROCKED BY A MAJOR RECESSION WHAT MILLIONS OF AMERICANS DID INSTEAD OF SUCCUMBING TO FEAR WAS TURNED TO A BARTER SYSTEM ACCORDING TO REASON CALM BY JANUARY OF 20088 CRAIGSLIST. BARTER PAGES HAD INCREASED 100 PERCENT IN TERMS OF POSTINGS AND TRAFFIC NOW. JUST IMAGINE HOW MUCH MORE EXTREME THE FINANCE PRESSURES BROUGHT ON BY A NATIONAL BANKRUPTCY INSTEAD OF A RECESSION WOULD BE. THIS WAS NOT SOMETHING THAT WAS JUST DONE BY POOR PEOPLE EITHER. 2007 SAW COMPANIES AND CORPORATION IN THE UNITED STATES INCREASE THEIR USE OF BARTERING FOR GOODS AND SERVICES BY ROUGHLY 16 BILLION DOLLARS. UNDER THESE CIRCUMSTANCES PEOPLE, WHO HAVE STOCKPILED
BASIC NECESSITIES, MAY WELL MAKE OFF LIKE BANDITS OR GAIN CONSIDERABLE INFLUENCE IN THEIR COMMUNITY FOR WHEN THE ECONOMY RECOVERS FROM THE BANKRUPTCY.
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
NUMBER "6" SELLING OF PUBLIC PROPERTY
IN ALBERT BROOKS IS BEST-SELLING NOVEL 2030 HE POSTULATES A SCENARIO WHERE AFTER A PARTICULARLY DEVASTATING EARTH QUAKE STRIKE LOS ANGELS, THE USA IS TOO BANKRUPT TO PAY TO RESTORE THE CITY AND A STYLE CHINESE CONTRACTORS COME IN AND FIX IT, AT THE COST OF LOS ANGELS BECOMING A PART OF CHINA FOR 50 YEARS. WHILE IN REAL LIFE SOMETHING THAT EXTREME IS UNLIKELY. IT WOULD CERTAINLY NOT BE UNPRECEDENTED FOR THE FEDERAL GOVERNMENT TO SELL OFF ASSETS FOR DEBT, EVEN IN RELATIVELY RECENT TIMES. WEST COAST BK.COMM TELL US THAT IN THE 1990'S. THIS WAS THE REASON THAT
A NUMBER OF MILITARY BASES IN AMERICA WERE CLOSED. EVEN WITHOUT SELLING OFF THE GROSS DOMESTIC PRODUCT OF ANY CITIES. THE FEDERAL GOVERNMENT HAS ACCESS TO RESOURCES THAT WOULD MORE THAN DEAL WITH PROJECTED DEBT.
IN 2014 IT WAS REPORTED THAT THE US HAD ACCESS TO 128 TRILLION DOLLARS IN MINERAL RIGHTS ALONE, BOTH ON LAND AND OFFSHORE. THE SQUARE MILEAGE OF THAT IS LARGER THEN THE ENTIRE SURFACE OF CANADA. JUST MAINTAINING
ALL OF CANADA JUST MAINTAINING ALL OF THE TENS OF THOUSANDS OF UNDERUTILIZED BUILDING OWNED BY THE FEDERAL GOVERNMENT COST ONE POINT SIX, SIX BILLION DOLLARS ANNUALLY. SO IF A SIGNIFICANT NUMBER OF THOSE WERE SOLD IT WOULD SAVE THE GOVERNMENT CONSIDERABLY.
NEVER MIND ALL THE MONEY THAT COULD BE MADE FROM THE SALES. IN SHORT THE FEDERAL GOVERNMENT HAS PLENTY
TO OFFER DEBTORS, AND MANY WAYS TO TIGHTEN IT'S BELT IF THE DEBTS COMEST YOU.
THE TOP 10 THINGS THAT WOULD HAPPEN IF THE UNITED STATES WENT BANKRUPT.
NUMBER "5" MANY WILL BE DRIVEN FROM THEIR HOMES"
DESPITE THE ABILITY OF THE GOVERNMENTS TO (LIKELY) EVENTUALLY DEAL WITH ENORMOUS DEBT ON A NATIONAL LEVEL, IN THE INTERIM IT WOULD STILL BE ABLE TO WREAK HAVOC ON EVEN GOVERNMENT EMPLOYEES DURING THE 2013 GOVERNMENT SHUTDOWN, EMPLOYEES WERE EVICTED WHILE ON FURLOUGH OR EVEN THOSE THAT WERE STILL ACTIVE BECAUSE THEIR PAY WAS SUSPENDED AND THEIR LANDLORDS COULDN'T WAIT FOR THEM TO RECEIVE BACK PAY BEFORE REMOVING THEM FROM THEIR HOMES. CONSIDERING THAT'S WHAT HAPPENS TO
THE PEOPLE THAT CONTINUE TO BE VITAL TO THE GOVERNMENT, WHAT FATE CAN THE PRIVATELY EMPLOYED PEOPLE EXPECT? WELL CONSIDER THIS: IN A THREE MONTH PERIOD FOLLOWING GREECE'S ECONOMIC CRISIS AND DESPITE BILLIONS IN BAILOUTS, ATHENS HOMELESS RATE ROSE ROUGHLY FORTY PERCENT, AND THERE WAS LITTLE IMPROVEMENT TO THE ECONOMY YEARS LATER. FOR AN INDICATION THAT'S CLOSER TO HOME,THE MORTGAGE BANKERS ASSOCIATION REPORTED THAT 1.2 MILLION HOUSEHOLDS WERE LOST TO THE 2007 AMERICAN RECESSION. FRANKLY , IT WOULD BE AMAZING IF THERE WEREN'T CITIES OF HOMELESS
PEOPLE FOR AT LEAST A WHILE AFTER THE GOVERNMENT DECLARES BANKRUPTCY.
NUMBER "4" BONDS LAWSUITS"
IT'S OFTEN FORGOTTEN IN THIS TURBULENT POLITICAL CLIMATE THAT PART OF AMERICA ALREADY HAS DECLARED BANKRUPTCY : THE RECENTLY DEVASTATED TERRITORY OF PUERTO RICO. EVEN BEFORE IT WAS DEVASTATED BY HURRICANE MARIA, PUERTO RICO WAS IN SUCH MASSIVE DEBT, THAT IT SOUGHT BANKRUPTCY PROTECTIONS IN MAY 2017 FOR ITS SEVENTY BILLION DOLLAR DEBT. ONE CONSEQUENCE OF THIS WAS THE US GOVERNMENT WAS SUED. THIS WAS BECAUSE IT HAD GUARANTEED THAT THE BOND THAT HAD BEEN ISSUED TO PEOPLE WHO INVESTED IN PUERTO RICO BACK WHEN THE PUERTO RICAN GOVERNMENT WAS DOING MUCH BETTER (THE DOWNTURN ESSENTIALLY BEGAN IN 2006 WHEN FINANCIAL STIMULUS FROM THE FEDERAL GOVERNMENT WAS CUT OFF). SO IF AMERICAN'S FEDERAL GOVERNMENT DEFAULTS ON THE APPROXIMATELY FOUR TRILLION DOLLARS, THAT THE GOVERNMENT OWES TO FOREIGN GOVERNMENTS OTHER THAN CHINA, THERE WOLD BE LAWSUITS, THAT WOULD LAST LONG AFTER ECONOMY WOULD LIKELY BE RESTORED.
NUMBER "3" DEMANDING MONEY FROM THE WORLD BANK.
IN THE EVENT THAT THAT THEN-PRESIDENT AND OTHERS DO NOT WANT TO RISK THE HUMILIATION OF SELLING AMERICAN LAND AND MINERAL RIGHTS TO PAY OFF DEBT, APPEALS CAN BE MADE TO THE INTERNATIONAL MONETARY FUND / WORLD BANK. THERE ARE CERTAINLY WOULDN'T BE ANY MORAL OBJECTIONS THAT THE IMF COULD BE EXPECTED TO EXPRESS. IN FEBRUARY 2016, FOR EXAMPLE THE ORGANIZATION WAS CONTEMPLATING PROVIDING FOUR BILLION DOLLARS TO AZERBAIJAN AND $3.5 BILLION TO NIGERIA IN BAILOUT MONEY EVEN THOUGH THE TWO COUNTRIES WERE NOTORIOUS FOR CORRUPT AND ABUSIVE ACTIONS TAKEN TO PROP UP THEIR PETROLEUM INDUSTRIES. BY CONTRAST, IN 2011 IT WAS REPORTED THAT IMF HAD EXERTED CONSIDERABLE EFFORT IN ATTEMPTING TO PERSUADE DEVELOPED COUNTRIES , PARTICULARLY THE UNITED STATES OF AMERICA, TO GIVE LOANS TO DEVELOPING COUNTRIES EVEN THOUGH THERE WAS LITTLE TO NO HOPE THAT THEY WOULD EVER SEE A RETURN ON THEIR INVESTMENTS. SO NATURALLY IF THE IMF WANTS THE DEVELOPING, IT AND OTHER NATIONS WILL LIKELY BE WILLING TO PROVIDE SOME MEASURE OF BAILOUT MONEY TO THE US.
NUMBER "2" GET AWAY WITH NO PAYING ALL DEBTS"
BEFORE WE GET TO THE GRIMMEST SINGLE ENTRY ON THIS LIST, LET'S TAKE A BREAK AND TALK ABOUT SOMETHING THAT'S NOT SO DARK, AT LEAST AS FAR AS THE US ITSELF IS CONCERNED. RETURNING TO THE 2001 ARGENTINIAN BANKRUPTCY ONCE MORE, OR MORE SPECIFICALLY AN ACT PERFORMED BY THE ARGENTINIAN GOVERNMENT SEVERAL YEARS AFTERS. WITH EQUAL AMOUNTS OF GALL AND SAVVY, THEY OFFERED TO PAY THEIR CREDITORS BACK ONE THIRD OF THE AMOUNTS OWED IN EXCHANGE FOR FORGIVENESS OF ALL DEBTS. THAT MAY SEEM COMPLETELY UNACCEPTABLE, BUT THE THOUGHT OF GETTING ONE THIRD OF THEIR MONEY BACK, EVEN IF IT MEANT SACRIFICING THE PROMISE OF GETTING TWICE AS MUCH DOWN THE LINE AT SOME UNSPECIFIED TIME, WAS ENOUGH THAT FULLY HALF OF ALL THE CREDITORS TOOK THE DEAL. THUS IT'S QUITE POSSIBLE THAT IF, IN THIS HYPOTHETICAL SITUATION, THE AMERICAN GOVERNMENT WAITS SOME TIME, IT COULD PERSUADE ITS CREDITORS THAT ACCEPTING CONSIDERABLY LESS THAN THEY
WERE OWED WOULD BE PREFERABLE TO MAKING IT IMPOSSIBLE FOR THE AMERICAN ECONOMY TO RECOVER. AS A POPULAR SAYING IN THE WORLD OF FINANCE GOES, "WHEN YOU OWE THE BANK $100, YOU HAVE A PROBLEM. WHEN YOU OWE THE BANK $ 1,000,000 THEY HAVE A PROBLEM.
NUMBER "1". MASSIVE INCREASE IN VIOLENT CRIME.
UNSURPRISINGLY, NEWLY BANKRUPT GOVERNMENTS HAVE CONSISTENTLY SEE MASSIVE DROPS IN THEIR
SECURITY IF FOR NO OTHER REASON THAN THEY CAN'T AFFORD THEIR LAW ENFORCEMENT. EXAMPLE OF THIS IN RECENT TIMES INCLUDE WHEN, IN 2013, 2012 OLYMPICS LEFT RIO DE JANEIRO BANKRUPT. WHAT ENDED UP HAPPENING WAS THE BUDGET FOR ALL FORMS OF SECURITY WAS CUT IN HALF AND ONLY POLICE SALARIES WERE STILL FUNDED. NOW IMAGINE THE IMPACT THAT COULD HAVE ON DNA TESTS
AND OTHER FORMS OF CRIME SCENE INVESTIGATION AS AIRPORT SECURITY, SECRET SERVICE PROTECTION, ETC.
NOW ADD ON TOP OF THAT ALL THE PEOPLE THAT WILL BE FURIOUS BECAUSE THEY LOST THEIR LIFE SAVINGS (FOREVER , AS FAR AS THEY KNOW) , ANXIOUS BECAUSE THIS IS A HIGHLY UNFAMILIAR SITUATION, AND POTENTIALLY A SITUATION WHERE VITAL RESOURCES SUCH AS OIL AND FOOD WON'T BE ACCESSIBLE. CONSIDER THAT IN 2013, A YEAR AFTER DECLARING BANKRUPTCY , THE CITY OF SAN BERNADINO,
CALIFORNIA SAW A FIFTY PERCENT RISE IN ITS HOMICIDE RATE, AND REMEMBER THE ADVICE CITY ATTORNEY JAMES PENMAN GAVE: "LOCK YOUR DOORS AND LOAD YOUR GUNS"
Comments
Post a Comment