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Preparing for a potential US debt default
10-07-2013, 11:37 AM
So October 17th is the day the USA will potentially default on interest payments on debt. A lot of people think it could never happen, but apparently a lot of people in Poland in late October 1939 felt that war would never happen.
As a doctor, I'm also used to approaching complex problems with 'Hope for the best, but assume the worst.'
The default, if it comes, will possibly cause another Lehman brothers-style meltdown.
My plan for dealing with a possible default:
- I'm keeping a significant amount of cash in reserve. I expect the stock market to crash following a default, so if that happens I'm going to rush in and buy stocks cheap. If the economy rebounds, I'll be a rich man.
- I'm going to build a small stockpile of essential goods this weekend so that I can survive a while should the purchasing power of my currency collapse.
Is anyone else on the forum making contingency plans for Oct 17th? Any bright ideas on how to profit/survive a potential worldwide economic shockwave?
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Preparing for a potential US debt default
10-07-2013, 11:43 AM
I'm quite sure the Treasury will just divert funds from elsewhere to pay the interest. If it doesn't, then they've unnecessarily screwed the US over. Then again... knowing the track record of "rational" government, it's probably best to prepare just in case.
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Preparing for a potential US debt default
10-07-2013, 11:44 AM
I don't believe it will happen. The Govt shutdown will probably go all the way up to the 15th/16th, but there is just no way that they don't raise the debt limit. The impact would be unthinkable, certainly worse than Lehman Brother's collapse. Its affects would be felt worldwide.
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Preparing for a potential US debt default
10-07-2013, 11:46 AM
What about the possibility that your cash is only suitable for wiping your ass with?
You can't put all your faith in a fiat currency.
Buy physical gold. Diversify.
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Preparing for a potential US debt default
10-07-2013, 11:52 AM
Ah. Honestly I don't think this will happen, not now at least, the US pay their debt and exports with money they print, what happens is that if they have to print too much the currency can get devalued and lead to hyper inflation of prices. But this would be an extreme case, a bit like Weimar Germany 90 years ago.
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Preparing for a potential US debt default
10-07-2013, 11:56 AM
At few posts above, the treasury has already been doing that since May. On Oct 17 that gig will be up and the US will have roughly 30 billion in cash left. Enough to last around 2 days. What happens after that is gone, no one knows. Won't be good for sure
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Preparing for a potential US debt default
10-07-2013, 11:58 AM
It'll happen eventually. The sooner the better in my opinion, they just can't keep on kicking the can down the road, they need to see how really screwed up we are and deal with it head on. Not saying its a good thing, but its either deal with the problems right now, they're not going to ever fix them until people start feeling real hurt instead of pretending nothing is wrong. There's impending collapse coming with this false economy, its been warned for a few years, they never fixed the problems of the last economic collapse so here we are just treading more water.
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Preparing for a potential US debt default
10-07-2013, 12:20 PM
If this happens then the world goes down. The system collapses, that's it. Of course there will be niches here and there, but the Domino system is unrelenting...
"Christian love bears evil, but it does not tolerate it. It does penance for the sins of others, but it is not broadminded about sin. Real love involves real hatred: whoever has lost the power of moral indignation and the urge to drive the sellers from temples has also lost a living, fervent love of Truth."
- Archbishop Fulton J. Sheen
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Preparing for a potential US debt default
10-07-2013, 12:20 PM
That's a bit of a stretch. I'd say the U.S. is pretty far from defaulting and there are many, many alternatives. As mentioned above, it would be an unnecessary and intentional move, not one out of necessity.
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Preparing for a potential US debt default
10-07-2013, 12:51 PM
What do you all think this means for real estate?
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Preparing for a potential US debt default
10-07-2013, 02:36 PM
It won't happen, congress is just playing chicken to see how much they can get from the other group.
Why would politicians want to be out of a job? They will get together on the 16th or before, pass a budget, and raise the ceiling.
Buying gold is a lot like fiat currency, it's based on "belief. Maybe tomorrow people might find out gold causes dementia and gatorade is the best thing.....so gold will crash and gatorade will skyrocket.
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Preparing for a potential US debt default
10-07-2013, 03:16 PM
Which "cheap stocks" are you planning to buy when they are at a low after potential collapse?
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Preparing for a potential US debt default
10-07-2013, 03:25 PM
I got 10M in Iraqi Dinar. The dollar will tank, oil backed currency will rise and I'll rich!
TOP THAT MOTHER FUCKERS!
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Preparing for a potential US debt default
10-07-2013, 03:57 PM
Quote: (10-07-2013 11:58 AM)PartyonBro Wrote:
It'll happen eventually. The sooner the better in my opinion, they just can't keep on kicking the can down the road, they need to see how really screwed up we are and deal with it head on. Not saying its a good thing, but its either deal with the problems right now, they're not going to ever fix them until people start feeling real hurt instead of pretending nothing is wrong. There's impending collapse coming with this false economy, its been warned for a few years, they never fixed the problems of the last economic collapse so here we are just treading more water.
Was discussing this a few nights ago. From what I understand, we default and say fuck the world , and everybody else follows suit. It would hurt but it is needed. Does anybody truely believe our Congress can fix the problem within the next five years? Cut and tax is the only way and they aren't willing to do either. Congress is too toxic and I don't see Clinton or Christy fixing the problem.
My only issue is what will happen to my dollar?
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Preparing for a potential US debt default
10-07-2013, 04:10 PM
Yeah, that's why its a pretty good time to get into a mortgage or in precious metals right now. If it doesn't come from a debt default it'll come from QE easing.
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Preparing for a potential US debt default
10-07-2013, 04:25 PM
I don't think gold is that good of a buy right now, if anything it might be overvalued. Investing in foreign stocks mutual funds might not be a bad idea- so long as you think the company is sound and will grow in the long run already, it would only benefit from a usa currency crisis.
Other comodities, maybe US steel
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Preparing for a potential US debt default
10-07-2013, 04:27 PM
what would happen to bitcoins? I assume they would sky rocket
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Preparing for a potential US debt default
10-07-2013, 04:27 PM
The US will stop cutting SS checks before it stops paying interest on the debt. There will be no default.