Joyce warns of 'economic Armageddon'


TONY Abbott's new finance spokesman, Barnaby Joyce, believes the American government may default on its debt, triggering an "economic Armageddon" that will make the recent global financial crisis pale into insignificance.

The Age - 11th Dec 2009 - By MARK DAVIS NATIONAL EDITOR

www.theage.com.au/national/joyces-armage...g-20091210-km90.html

Linky no worky.

But, on topic, why would they default when then can, and apparently will, print. You could call it a 'de facto default', but you can bet THEY never will. They'll hand you bushels of fresh FRNs with a straight face.

Linky no worky.

But, on topic, why would they default when then can, and apparently will, print. You could call it a 'de facto default', but you can bet THEY never will. They'll hand you bushels of fresh FRNs with a straight face.

www.theage.com.au/national/joyces-armage...g-20091210-km90.html

New linky now worky...

The page where the article was posted before disappeared without a trace.

I was starting to think we needed a conspiracy forum!

But then I saw it's posted somewhere else, still alive and well.

TnAndy wrote:
Linky no worky.

But, on topic, why would they default when then can, and apparently will, print. You could call it a 'de facto default', but you can bet THEY never will. They'll hand you bushels of fresh FRNs with a straight face.

To paraphrase our former glorious leader and commander-in-chief, "That depends on what your definition of 'THEY' is!"'

By "THEY" if you mean the banker, of course they will never default. They're a living breathing Weimar Republic with no repartions owed.

If by "THEY" you mean, the USG, it can and will default if it suits the desires of the other "THEY."

Technically speaking, since US debts are all denominated in US dollars, the US cant default.

It is for this reason that I believe the US has the ultimate "get out of jail free" card.

They can pay off all debts in the blink of an eye, and then revalue the currency to remove the excess.

It might be painful for a year or so as the foreign holders get over their anger, but, what exactly could they do in response?

Argentina would be the case study of how this could work...