On 2009-01-14, Ed Huntress wrote:

"Ignoramus18994" wrote in message
...
On 2009-01-14, Ed Huntress wrote:

"Too_Many_Tools" wrote in message
...
At this burn rate, America is really screwed.

Meanwhile our Chinese bankers are having serious internal financial
problems...which means they will be much less likely to buy our debt.

When will America default?

TMT, several people have explained to you from time to time that the US
*can't* default. If you still don't understand why, please ask about
whatever it is that has you confused, and you'll find that there are
several
people here who can explain it. I'm giving up on you. d8-)

Why, the US can default. It can also choose not to default and print
money due to creditors. But to say that the US cannot default, would
be incorrect.

You're saying we could *choose* to default. Of course. We could all decide
to shoot ourselves in the head, too. That's freedom of choice. g

And it is far from impossible. Right now the CDEs on government debt
are trading at a level that implies a 6% probability of default (it is
not that easy to calculate). So the market thinks that there is
something going on.

But I don't think that's what TMT is referring to. Unless he has a more
complicated script running in his head, I'll bet he's suggesting that we
would be *forced* into default. And that, as you know, is impossible.

You are correct -- unless, that is, Congress would decline to
authorize debt payments.

Many things that are thought of as impossible, have since
happened. And many did not.

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