US could run out of cash as soon as Dec. 15, Janet Yellen warns - page 4.

Lucius

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Quote from: aysg76 on November 18, 2021, 08:39:52 AM

To all those who hold bitcoin don't care about social security at all as and all the freedom lies in their hands and government will not tell u and make you fool devaluing your inflationary fiat slowly and then next government will come up with same excuses and filling up their pokcets and you will have nothing left with you.

But how many such people are there in the US or globally? I will not go into the percentages that often come from various surveys based on a few hundred or maybe a thousand respondents selected from parts of society who have higher education and know how to secure themselves financially, but even that 10% of US citizens own Bitcoin, I'm sure few can say that they do not care about what will happen to their economy and currency.

Bitcoin is still relatively underrepresented as a storehouse of value for ordinary people, meaning they are dependent on the system and the mostly incompetent and corrupt governments that run it.

stompix

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This time it will!!!! Grin

These are just like zerohedge predictions, I remember this line from gentlemand:

Quote from: gentlemand on June 25, 2020, 04:15:38 AM

~ Zerohedge, the site that predicted 200 of the last 2 recessions.

Guess what, nothing will happen.
The US government won't run out of money, the US will not default and the next year we're going to have the same discussions again and this time it will be the last time...or maybe not!
The US debt is in $, the US can print $, unlike any other country they don't need another currency but others need theirs, so, nothing to see for a while, move along.

Quote from: buwaytress on November 18, 2021, 04:45:12 AM

Though I wonder if 100k usd next year is going to be as valuable as 100k usd now.

Really depends on what you're buying.
Things here are just a mess, a complete mess, prices for energy have skyrocketed, prices for some things like electronics or spare parts the same, some foods again, but others...not really. Meat and vegetables stayed nearly flat, fruits barely moved, transportation costs flat (except if you drive yourself, of course), most services the same, or clothes and health products.
It has a lot to do with what you import, how much of it, and how bad the sector was hit by this.

aysg76

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Quote from: Hydrogen on November 17, 2021, 06:08:24 PM

It appears that a US federal government default is on the table. An event which has reached mythical proportions over the past century. Every year for the past 50+ years people warn the government could default and social security will collapse. This negative sentiment has become so common and widespread that over time americans have come to believe it can never happen. "Social security will fail." Oh but people have been saying it will fail for 50 years and it hasn't. This means social security can never fail.

As time passes and debt grows, our options and safety net for resolving these issues in a positive way, shrink.

The governments have been putting the financial stability of the countries at stake from ages and when they see situations going out of hands they face the public with negative outlook and all these situations is potrayed as this has happened due to pandemic.But they have the simple solution to this which is printing more notes as they have been doing from the past.

Quote

A currency which has 4x intial supply and more could be printed without involving the community and all centralized control can pass shitcoin giggle test and that's US dollar for you.
~ Winklevoss

To all those who hold bitcoin don't care about social security at all as and all the freedom lies in their hands and government will not tell u and make you fool devaluing your inflationary fiat slowly and then next government will come up with same excuses and filling up their pokcets and you will have nothing left with you.

goldkingcoiner

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I think this news is a bit unnecessarily alarmist. Whenever the US government starts facing a cash crises they always find a way to pawn off the debt in complicated ways. I think they will just print more money, therefore dropping the value of the USD via inflation and the ones who will have to foot the bill will be the citizens of the US. That way the dollar amount debt they owe stays the same but loses value at the same time.

And bread and milk at the supermarket rises in price, the unemployment rate up down because the companies can't handle the inflation without firing people and now you have more people on the streets.

Lucius

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Quote from: Darker45 on November 17, 2021, 08:55:03 PM

Oh, this looks like news recycling. Unfortunately, it isn't. But this is the exact same headline I read on the papers in July and then in August and in September and in October and now in November. Are we gonna be reading the same news next month? What's happening to the most powerful country in the world?

Some use this situation to keep markets under constant pressure and create a classic FUD that the world will collapse because the US will run out of money, and we all know that this will not happen anywhere else except maybe in a movie. Democrats and Republicans may play their political games from time to time, but when the water reaches their throats they will agree very quickly and everything will continue at the usual pace.

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Quote from: enhu on November 17, 2021, 10:27:23 PM

Although it may be considered a solution, it's also going to make inflation rise as it is happening already in US.

Absolutely! That's the price they will pay and that's what makes it a one-time thing. Once it's used, it's gone forever. Nobody will trust the currency again!

buwaytress

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So we also have record inflation on the cards not just in the US but in most of Europe, and large swathes of the global South.

Inflation, debt and defaulting of the world's biggest economy. That has got to be good for Bitcoin, no? Though I wonder if 100k usd next year is going to be as valuable as 100k usd now.

PrivacyG

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Quote from: enhu on November 17, 2021, 10:27:23 PM

The government prints a lot already. Although it may be considered a solution, it's also going to make inflation rise as it is happening already in US.

This should send everyone a very powerful message: there is no going back and the more they print, the deeper the scar will be. Raising the debt ceiling is of no good. It is going to only make things worse. Once the recession triggers, we are going to wish there was no debt ceiling raise.

We are right at the start of a very deep crisis. Look up the inflation rate of almost any country and you will see how bad this is becoming. Not only in US, not only in Europe but worldwide. There is no time to make any mistakes and I am really concerned about a choice as such. As much as we do not want to see a crisis and to acknowledge there is going to be one, pushing it back again and again will only backfire on us stronger than ever.

-
Regards,
PrivacyG

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Quote from: Darker45 on November 17, 2021, 08:55:03 PM

Oh, this looks like news recycling. Unfortunately, it isn't. But this is the exact same headline I read on the papers in July and then in August and in September and in October and now in November. Are we gonna be reading the same news next month? What's happening to the most powerful country in the world?

And I'm familiar with this from many years ago as well, this happens periodically in the USA, kind of Groundhog Day but in politics. I don't have a crystal ball, but it is clear to me that they will not run out of cash, in the end they will reach an agreement in extremis and everything will be settled, as has happened several times in the past.

enhu

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Quote from: Lotus on November 17, 2021, 10:17:48 PM

The US can't practically run out of cash as long as the world reserve currency is the USD. They can print money to pay their debts even to foreign countries. Of course that's a single use get-out-of-jail card. Because once they do that, the USD will cease to be the reserve currency.

Possibly at that point some "other" currency that is not controlled by any single government... perhaps something decentralized.

The government prints a lot already. Although it may be considered a solution, it's also going to make inflation rise as it is happening already in US.
There had been debates about raising the debt ceiling but no one will really want to be portrayed as a bad guy which is likely either Dem or Rep will not support it. But we'll see if this someone out there going to stand up and be the one.

Lotus

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The US can't practically run out of cash as long as the world reserve currency is the USD. They can print money to pay their debts even to foreign countries. Of course that's a single use get-out-of-jail card. Because once they do that, the USD will cease to be the reserve currency.

Possibly at that point some "other" currency that is not controlled by any single government... perhaps something decentralized.

Darker45

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Oh, this looks like news recycling. Unfortunately, it isn't. But this is the exact same headline I read on the papers in July and then in August and in September and in October and now in November. Are we gonna be reading the same news next month? What's happening to the most powerful country in the world?

Is raising the debt ceiling the only way to resolve this issue once and for all? Or are the Republicans right in blocking it and instead pointing out the indiscriminate spending of the government?

Hydrogen

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Quote

The US government could run out of cash and be forced to default on its debt if lawmakers fail to raise the debt ceiling by Dec. 15, Treasury Secretary Janet Yellen warned Tuesday.

Yellen explained that the new deadline comes as a result of the $1 trillion infrastructure agenda, which was signed into law by President Joe Biden on Monday.

Many Republicans have said they won’t cooperate on any effort to raise the debt ceiling come December, saying that the US needs to reign in its out-of-control spending.

If the debt ceiling isn’t raised, the Treasury would likely be forced to prioritize certain payments like Social Security. The cutting of certain programs would likely fall disproportionately on the elderly and poor.

Raising the debt limit would not authorize any new spending, but rather let the government issue new debt to pay for existing obligations.

Yellen has insisted that a US default, in which the Treasury delays interest payments on debt, could devalue the US Dollar and launch the country as well as the world into a major recession.

Congress nonetheless has a number of other burdensome items, including passing Biden’s $1.8 trillion American Families Plan, that it must address before grappling with the debt ceiling.

https://nypost.com/2021/11/17/janet-yellen-warns-us-could-run-out-of-money-by-december-15/

....

More at source. I trimmed the article down to its most relevant parts.

It appears that a US federal government default is on the table. An event which has reached mythical proportions over the past century. Every year for the past 50+ years people warn the government could default and social security will collapse. This negative sentiment has become so common and widespread that over time americans have come to believe it can never happen. "Social security will fail." Oh but people have been saying it will fail for 50 years and it hasn't. This means social security can never fail.

As time passes and debt grows, our options and safety net for resolving these issues in a positive way, shrink.

If anyone has bright ideas for how these issues might be resolved. Now would be a good time to voice them.

A jump start on what could develop into a full blown crisis might also be a good policy.

Topic: US could run out of cash as soon as Dec. 15, Janet Yellen warns - page 4. (Read 601 times)