November 04, 2006

Everyone ready? Democrats warn that U.S. debt could trigger crisis, dollar meltdown


The party about to sweep to power in the US is basically telling foreign governments that our economy is about to melt down, and our dollar is about to be significantly devalued. Two words: Get Out.

Which, of course, will make our economy melt down even faster, and our dollar become more worthless quicker.

Nice job, Dems.

WASHINGTON -- Democratic lawmakers warned on Thursday that U.S. reliance on foreign countries to purchase U.S. debt could lead to a financial crisis as they faulted the Bush administration's economic stewardship.

"If the United States does not begin to take steps to reduce its unsustainable dependence on foreign borrowing in an orderly way, there could be a run on the dollar that could precipitate an international finance crisis and a sharp increase in interest rates," a report issued by Democrats on the congressional Joint Economic Committee and House of Representatives Financial Services Committee said.

56 comments:

Anonymous said...

They're not saying anything that shouldn't already be obvious to anyone with any understanding of economics, or, for that matter, anything that hasn't already been said by the likes of Volcker and (even) Greenscam. I seem to recall Greenscam saying something about a potential for "diminished appetites" for dollar-denominated assets.

BuckNekid and Mabel Wonderful said...

WE ALL GONNA DIE!

Anonymous said...

Anonymous said...

They're not saying anything that shouldn't already be obvious to anyone with any understanding of economics, or, for that matter, anything that hasn't already been said by the likes of Volcker and (even) Greenscam. I seem to recall Greenscam saying something about a potential for "diminished appetites" for dollar-denominated assets.

--------------------

Or Buffett for that matter. Warren Buffett has been hedging (dollar) currency risk for several years now, and talking about it. "Sharecropper society" is a pretty catchy phrase. In one of his letters to shareholders, he compares the US to a farm family that decides to not work anymore, just support their lifestyle by selling off portions of the farm. Ooops, eventually there is nothing more to sell. That is the predicament we will soon find ourselves in.

Anonymous said...

And yeah, I blame Shrub and his misleadership.

Anonymous said...

The US trade deficit to GDP ratio is past the point at which currency crises usually start.

Anonymous said...

wacahootaman said...

WE ALL GONNA DIE!

---------------------------

True, but irrelevant.

Anonymous said...

Here we are in super rich Loudoun County, Virginia. The land where developers and home builders control everything from the local politicians to the air we breath and the water we drink. Well, low and behold, $800,000.00 plastic sided boxes of air are being auctioned today. Aww... the crowds of idiots bidding the prices up in '05 have all disappeared. Now, let us watch just how low will it go. I'm grabbing a nice bottle of wine any maybe some brie and crackers and I'm going to go and watch. Today is a good day to see first hand the local dollar meltdown! This will be . . . e x c e l l e n t!

Farm Girl

Anonymous said...

CNNMoney
Caterpillar warns of housing slowdown in '07
Exec says 'significant slowdown' will take place next year, also warns of threat of new clean-air rules to company's business.
November 3 2006: 6:42 AM EST

LAFAYETTE, Indiana (Reuters) -- A top executive at Caterpillar Inc., the U.S. heavy equipment maker, said late Thursday he believes 2007 will be a year of "significant slowdown" in the U.S. housing market.

Anonymous said...

Silly Dems, tricks are for realtwhores!

Anonymous said...

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Click Here

Anonymous said...

Dem lib tard dems is tryin' ta scare da sheeple. Evwebuddy else alweddy nose.

Anonymous said...

I don't get it, keith: most of the time you complain about how our leaders won't publicly accept unpleasant truths. Yet when they (to the extent that you can call dems "leaders" these days, which is kind of a stretch), you rail them for it.

Which is it? You can't have it both ways.

Anonymous said...

sorry, meant "when they *do* tell the truth." accidentally left that word out.

Anonymous said...

The issue is more that the Dems want the crash so they can blame the right. It is the "we don't care if everyone suffers as long as we will be in power" thing. Declaring the obvious is simply sleazy CYA for later.

Anonymous said...

Thats hillarious!

Franklin Raines was Clinton's CBO. He was the ceo who screwed up Fannie Mae.

dem = rep

Anonymous said...

Now that European people are not moving to America anymore, but mostly the thrid world, the economics of the United States will match that of Latin America.

blogger said...

If the Dems want to be leaders who tell the truth, then they'll need to go 100% all the way - and tell the truth about social security and medicaid/medicare.

they can't pick and choose, and just tell the truth on the dollar implosion, the deficit or the trade imbalance. All or none.

Anonymous said...

Keith

Why would China, India or Japan dump the dollar. The system at present works for their benefit as well - who else will buy all their crap.

Stop listening to gold bug kool aid of how the dollar is doomed and maybe read the book by Louis Gave which gives a better description of how the world works.

I think the Democrats will be lucky to gain 2 seats in congress and have no chance in the senate - what have the democrats done for blue collar america in the last 20 years? Which president signed NAFTA?

Anonymous said...

So what is a simpleton like myself suppose to do with my wamu cd's and my Fannie mae bonds? Is gold the answer as suggested in earlier posts?

Anonymous said...

Your an idiot, such a successful gold trader....

Your political calling skills are as bad. Even though 99% of the media is rooting for the demonkrats, they are going to lose.

Most of the people in the country realize they don't want to be controlled by a bunch of left coast liberals...

By the way, I bought gold and held it. It's not a trading game unless you are a dealer/market maker in it.

blogger said...

"Your an idiot"

'nuff said huh HP'ers?

Seems like you'd check YOUR spelling before you call people an idiot, otherwise YOU'RE the idiot

he he he

blogger said...

oops I just fed the troll. My bad.

Anonymous said...

Amigauser said
"Why would China, India or Japan dump the dollar. The system at present works for their benefit as well - who else will buy all their crap"

China and India will not dump the dollar if its in their self interest. And they will dump the dollar if it is in their self interest. At some point India and China that even crap has some value but a dollar bill has none. Thats when the dumping will start.

Anonymous said...

Americans have been consuming way more than we have been producing. China at some point will have to address its decrepit infrastructure. At the same time, our situation in Southwest Asia is grim. The demand for our currency is coming to an end, and if you want to turn this into a blame game, blame yourselves-fat, lazy, stupid Americans.

Anonymous said...

keith

why don't you tell us which welfare programme should be cut or eliminated.

Hillary Clinton was talking about a balanced budget a while ago, but she also says that their will be no pull back from Iraq, so Keith which welfare programmes do you think the democrats will cut so that the war in Iraq can still continue?

Anonymous said...

The demand for our currency is coming to an end, and if you want to turn this into a blame game, blame yourselves-fat, lazy, stupid Americans.

Maybe so, but in the meantime I'm living better than you are Frenchie!

Paige Turner said...

The party about to sweep to power in the US is basically telling foreign governments that our economy is about to melt down, and our dollar is about to be significantly devalued. Two words: Get Out.

Lets assume that the Democrats somehow succeed in winning the upcoming election, in spite of all of the rigged voting machines, voter fraud, disenfranchised voters, bogus vote counting and destroyed paper ballots.

With the US financial and political situation so out of control, what can the Democrats possibly do to save the country? There will still be trillions of dollars lost in the housing crash, the costly civil war in Iraq will get worse and the US will become bankrupt.

At this point, military expenses will take top priority, inflation will wreak havoc on what's left of the economy, the infrastructure will continue to crumble, social services will decay even more and impoverished, homeless masses will riot in the streets.

It's going to take more than a Democratic majority to fix things.

Anonymous said...

Why does everyone consider the US to be so superior? The place is in the toilet and about to get much worse anyday now. France looks pretty good right about now.

Anonymous said...

Great...I pray for the dollar to collapse. Fully invested in Euros along with a newly acquired European Union passport has made me bulletproof.
Looking forward to see the over-extended American strivers selling apples on the street.

Anonymous said...

this election could be the beginning of the end for the democrats, since if they cannot win when President Bush is this unpopular when can they win?

If you are a blue collar worker can you honestly tell the difference between the democrats and the republicans?

Anonymous said...

Democrats are worried about something that may actually happen?
Considering their so thrifty i'm surprised!

Anonymous said...

DUH. I need a $180 k politician to tell me this?

Bill said...

So after all these years of lies, and the dems hiding in caves, you think they are going to come out like a white night on a white horse and ride in and save the day?
BS they are only saving face, they should have takin hold of the reins years ago, and stand up to these warmongering freaks.
So as far as i am concerned sure The Dems will take congress, but it will be the same old same old.

To many pockets have been filled. This economy will tank and the dollar will indeed be worthless. the question you have to ask yourself is are you prepared.

Anonymous said...

They're not saying anything that shouldn't already be obvious to anyone with any understanding of economics, or, for that matter, anything that hasn't already been said by the likes of Volcker and (even) Greenscam. I seem to recall Greenscam saying something about a potential for "diminished appetites" for dollar-denominated assets.
==================================
We should call him "Greensperm", because he more than anyone else is responsible for the collapse of the US dollar. He bailed out the bankrupt system when the markets crashed in 1987 by going into these illegal side bets called "derivitaves". When that began to collapse in 1998 with Long Term Capital Management and the Russian GKO crisis "Greensperm" responded with a "wall of money", where he just opened the floodgates and flooded the system with his liquidity. Then he foisted the internet bubble on us under the Y2K guise around the time period of 1999-2001. Whe the internet bubble collapsed he once again shot his Greensperm all over the place to create a housing bubble by allowing American's to use their home as an ATM machine.
The road has come to an end, a brutal end if government doesnt intervene to put the financial system through bankrutpcy reorganization and simply cancel the $700 trillion in derivative claims.

Anonymous said...

Greenspan, what a horses ASS!

Anonymous said...

Speaking of a horses ass, howabout,
Ted (the swimmer) Kennedy,
John (the war hero) Kerry,
Al (the sky is falling) Gore!

Anonymous said...

Kennedy.

The Hero of Chapaquitic!

Anonymous said...

borkfatty said:
"So as far as i am concerned sure The Dems will take congress"

At first denial, then disbelief and finally utter capitulation.

Priceless.

Anonymous said...

The Dems won't take control of either party, you'll see.

The polling and media companies have predicted this many times in the past with outcomes to the contrary, which only confirms their push-polling efforts and media-biased reporting to create the outcome they want. Just listen to that retard Olberman. He reminds me of that smart-ass kid in Jr. High we always waited for at recess to slap him around.

He'll get slapped around again, when his network finds just a few more advertisers shunning their network, as if this is what they need with so many ad dollars now going online : )

Anonymous said...

You guys don't understand Demospeak do you? Let me translate for you:

1) We are coming into power and that means all you "rich" people (ie. anyone with more than $100 in a checking account) are going to have to contribute to the general welfare.

2) Kiss 15% of your 401K and IRAs goodbuy. We need that dough to get started. Go ahead and bitch and moan, if you do enough of it, we may just decide to make it 30%

3) Gold and siver? Why those havens of terrorist financing are now illegal in these United States. As a convenience, the federal government will buy them from you under a generous six-month amnesty plan. You'll get $200 an ounce for gold, and $2.50 an ounce for silver. Don't forget to than us.

4) Effective 1/1/08, cash transactions over $1000 must get prior approval from DHS. Hey, why the anger? It's not like we're snooping on overseas phone calls - we're trying to fight terrorism!

Anonymous said...

The dems ain't gonna do nothin'. Anyone who thinks the dems will do anything good is a stupid arse.

Anonymous said...

Bush will veto everything they send his way for two years and they don't have override power

Anonymous said...

"Just short some US bond futures or the Dollar Index futures. Easiest and safest way to play the dollar meltdown."

Well, well, well, what have we here? Another rich S.O.B. profiting from the pain and misfortune of others. The Democrat Congress has a reward for people like you. They will repeal the capital gains tax cut and reinstitute the full, hard-on estate tax so that your ill-gotten gains go back where they belong, the federal government!

Bwahahahaha!

Anonymous said...

To all the Democrat deniers...my advice to you;

Bemd over, spread W-I-D-E and lube up it generously cause it's gonna big and painful on Tuesday.

Perhaps lots of Republican hypocritical homophobes will actually say: "please...please don't stop" while enjoying it and asking for more and more.

Anonymous said...

You say Bush will veto these Democrat tax increases? Not if he wants funding for the war in Iraq and no mention of that "I" word. If the Dems take the House, Bush will get a nose ring and Nacy Pelosi will be jerking the chain.

Anonymous said...

"Perhaps lots of Republican hypocritical homophobes will actually say: "please...please don't stop" while enjoying it and asking for more and more."

What makes you think the Dems will bother with lube on that golden shaft?

And just remember this you giddy Demotwats, 12 months after the gloat-fest, your asses will be in the sling, and YOU will get the blame for any economic sh_tstorms in progress.

Anonymous said...

Thomas Friedman's latest article says that Bush and Cheney think Americans are stupid.

Correction: Boot licking Repuke lap dog ARE stupid.

Sign and volunteer for Iraq to support your President, you keyboard commandos. Or as someone posted previously, bend over and lube up, faggots!

Bill said...

is this guy a disgrace or what??

Bush Slips Up: Says “The Only Way We Can Win Is To Leave Before The Job Is Done”...

http://tinyurl.com/ygeuor


(ment to post here my bad..beer brain going haha)

Bill said...
This comment has been removed by a blog administrator.
Anonymous said...

Laura Bush doesn't have a Senate vote on spending taxpayer money you retard. If you want to start dragging the relatives and spouses of pols into the argument, let's talk about Barney Fags significant other(s).

Thought so.

Anonymous said...

Didn't Laura Bush make some comment about Michael J Fox (with regard to his support for a Democrat). But that's alright she's not a politician.

From wiki entry on Barney Franks:
The fact is, yes, the Republicans do think [homosexuality] should be a crime. And I think there’s a right to privacy. But the right to privacy should not be a right to hypocrisy...people who want to demonize other people shouldn’t then be able to go home and close the door, and do it themselves.

Sounds like a bit of tough love to me.

Ha, ha, ho, ho ho....

Anonymous said...

AnonyDork:

Why don't you repub necons correct your party's fixation with the 'back door' as demonstrated by guys like Foley. Then you can join the rest of us independents in the real world. Then again, maybe you ARE Foley trying to bring up Kennedy to evade attention from your 'romantic obsession' with teenage boys.

Anonymous said...

Check the decline of the dollar vs. the strength of the Canadian dollar. Over the past 5 years the US dollar has lost value when compared to the Canadian dollar.

Big spending Republicans increased spending and increased debt for a war most people polled were against. The poll indicated they did not want the US to go to war without UN support.

Anonymous said...

Housing crash city.

Gimmee shelter.

Republicans and tin soldiers coming to take the value of my dollar away.

Nigeria passed a law against using the US dollar. The Nigerian currency is more reliable.

Anonymous said...

Greenspan also remarked after one of his speeches last Fall or winter that he'd rather be paid in gold than US dollars.

It was reported on CNBC.

Anonymous said...

The US will eventually default and tell China 'too bad'. China will repond with a 'oh really?, then dine on this nuclear bomb'.