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View Diary: White House issues veto threat over House's proposed 'Pay China First' bill (62 comments)

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  •  This bill is irrelevant (1+ / 0-)
    Recommended by:
    JML9999

    In a situation in which the US was forced to default Chinese debt it wouldn't be able to pay seniors anyway. Not paying China means all US borrowing end instantly, which means a huge chunk of federal spending also goes away.

    It won't be a choice of austerity vs some other option. It'll just be austerity, period.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Tue May 07, 2013 at 03:32:35 PM PDT

    •  The US Govt is not a household or business (0+ / 0-)

      The US Govt does not borrow money.

      "The Earth is my country and Science my religion" Christiaan Huygens

      by Auburn Parks on Tue May 07, 2013 at 08:06:54 PM PDT

      [ Parent ]

      •  Common misconception (0+ / 0-)

        It borrows food, steel, computers, microchips, consumer goods, etc.

        If the US fails to pay its debts and/or excessively print money, these imports come to an end. And it can't pay it's bills to seniors or anyone else.

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Tue May 07, 2013 at 08:27:05 PM PDT

        [ Parent ]

        •  It borrows none of those things....Foreign nations (1+ / 0-)
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          Chitownliberal7

          in an effort to maximize their population's employment have chosen to export their own national wealth in exchange for digital entries on the Fed's balance sheet.  They were paid US dollars when the transaction was made, there is no further transfer of financial wealth.  You are wrong.
          Why would the Govt not pay its bills?
          Are we running low on fiat money or did I miss something?
          Define excessive money creation.....if $1.4 trillion in newly created money in 2009 didn't cause inflation what is the tipping point? (i know the answer...hint: it has to do with real resources)
          Since 1979 the total number of US bonds in the world has grown 1400% from $800 billion to $15 trillion, where is the runaway inflation?  Thats right, inflation has done nothing but decline to the point of our nation being on the verge of deflation.

          "The Earth is my country and Science my religion" Christiaan Huygens

          by Auburn Parks on Tue May 07, 2013 at 08:33:33 PM PDT

          [ Parent ]

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