US debt could trigger dollar collapse, UN warns

[living love]

The United States dollar is facing imminent collapse in the face of an unsustainable debt, the United Nations warned today.

United States debt, which had now deepened to well over $3 trillion, might turn out to be unsustainable in the rest of 2007 or next, putting further downward pressure on the United States dollar, Rob Vos, the Director of the Development Policy and Analysis Division of the Department of Economic and Social Affairs (DESA), told correspondents at a Headquarters press conference.

He pointed out that since its peak in 2002, the dollar had depreciated vis-à-vis the major currencies by some 35 per cent and by 25 per cent against a broader range of other currencies.

Vos made these comments at the launch of the 2007 World Economic Situation and Prospects report midyear update.

With that increased debt the risk of a sharp depreciation of the dollar continued, he warned. If countries willing to invest in United States dollar assets expected further depreciation, they might be less willing to hold dollar assets, triggering a much sharper fall in the United States dollar. The risk of disorderly adjustment and the steep fall of the dollar existed. The policy challenge was how to prevent a hard landing of the United States dollar and forge a benign adjustment of the global imbalance.

In terms of the United States housing sector, he noted that a recession in the housing sector had continued in 2007, with a slowdown in activity and a large number of unsold homes. While house prices had not fallen, that might happen in the months and years to come if the recession continued as expected. A decline in prices would affect the domestic market, particularly household consumption in the United States, resulting in the risk of a serious recession in its economy, slowing growth from 2.1 per cent to 0.5 per cent in 2007 and 2008. That would then significantly slow the world economy and transmit the recession into the rest of the world.

I'm sure the Debt is way more that 3 trillion. So what is the real story here??

http://pressesc.com/01180629622_dollar_falls

[TGRR]

Original source:

http://www.un.org/News/briefings/doc...Ocampo.doc.htm

This is hilarious. You don't need to be a genius to see that having your debt exceed your economy is a sure fire way to collapse your currency.

And when the dollar takes a dive, it will haul everything else with it.

[Pappy&Me]

Originally Posted by TGRR

Original source:

http://www.un.org/News/briefings/doc...Ocampo.doc.htm

This is hilarious. You don't need to be a genius to see that having your debt exceed your economy is a sure fire way to collapse your currency.

And when the dollar takes a dive, it will haul everything else with it.

Good maybe when theres no more dollars, there will be no more freebees, no more traitors hiring out our jobs and busting our middle cass , no more corp bastards downsizing or selling us out to china,mexico, india and other American hating nations , and we can get back to rebuilding and stirilizing this nation after its parasite infestations of illegals , radicals and evil polititions .

[TGRR]

Originally Posted by Pappy&Me

and we can get back to rebuilding and stirilizing this nation after its parasite infestations of illegals , radicals and evil polititions .

The radicals might have something to say about that.

And "sterilize"?



Besides, odds are you'll either starve to death, or be killed in the chaos.

[SwiftSloth]

No. You dont get it. God is on our side. We dont need a stable economy, or to produce anything for that matter.

[Malcolm Wright]

Originally Posted by SwiftSloth

No. You dont get it. God is on our side. We dont need a stable economy, or to produce anything for that matter.

Exactly: and the only danger is those Muslims that hate our freedoms!

M.

[oki]

maybe you americans will then realise that you need yoru own currentcy..

[zipper99]

Except of course that whichever Administration is in power will step in, freeze all debt, call in their markers around the world and thumb their noses at the Chinese government holding worthless US Government Bonds.

The whole purpose of government debt is to NEVER BE PAID OFF - it's just a giant version of John Q. Public maxxing out all his credit cards and double mortgaging his house - the only difference being that a nation's government lives forever although it's leaders change with time.

[grimrebuke]

Originally Posted by Pappy&Me

Good maybe when theres no more dollars, there will be no more freebees, no more traitors hiring out our jobs and busting our middle cass , no more corp bastards downsizing or selling us out to china,mexico, india and other American hating nations , and we can get back to rebuilding and stirilizing this nation after its parasite infestations of illegals , radicals and evil polititions .

There won't be any more jobs to fight for. America is over 70% service-based. Meaning that most of what we do can actually go away if the economy turns bad enough.

[Kaliayev]

Originally Posted by zipper99

Except of course that whichever Administration is in power will step in, freeze all debt, call in their markers around the world and thumb their noses at the Chinese government holding worthless US Government Bonds.

The whole purpose of government debt is to NEVER BE PAID OFF - it's just a giant version of John Q. Public maxxing out all his credit cards and double mortgaging his house - the only difference being that a nation's government lives forever although it's leaders change with time.

Then international currency traders would knock the US currency down to the point where you would need a wheelbarrow full of cash to buy a cup of coffee. China, Japan and the EU are already suffering a bit to help the US keep its economy afloat. And thats because it benefits them. If it fails to benefit them any longer, they will drop that support like a hot potato.

The US Federal Reserve doesn't keep enough cash to spend its way out of something like this. The American people do not have enough money to spend in order for the government to issues bonds (average national savings in 05 were -1% IIRC). In the opinion of more than a few international security experts, the problems of the American economy are a bigger threat to global security than all the terrorist groups and rogue nations you could care to name.

[grimrebuke]

Originally Posted by Kaliayev

Then international currency traders would knock the US currency down to the point where you would need a wheelbarrow full of cash to buy a cup of coffee. China, Japan and the EU are already suffering a bit to help the US keep its economy afloat. And thats because it benefits them. If it fails to benefit them any longer, they will drop that support like a hot potato.

The US Federal Reserve doesn't keep enough cash to spend its way out of something like this. The American people do not have enough money to spend in order for the government to issues bonds (average national savings in 05 were -1% IIRC). In the opinion of more than a few international security experts, the problems of the American economy are a bigger threat to global security than all the terrorist groups and rogue nations you could care to name.

China is floating our economy because controlling the timing of our economic collapse is a strategic goal.

[86Dude]

When the U.S goes belly up hell will follow.

[grimrebuke]

It is basic Sun Tzu, you fight when your enemy is weakest, and most distracted. China will, when they choose, stop buying and start selling US debt, probably at a loss... because they can afford to as a Communist state. And then a can of Budweiser will cost 100 bucks within a few months, and the people will go nuts. Congress will want to pass all kinds of restrictions on what businesses can charge for their products, riots will occur in the streets, many businesses will simply collapse. Crime will get out of control as people try to seize anything they can eat or sell. When unemployment breaks 60% our manufacturing base will be impotent. The military will be deployed state-side trying to stiffle the violence. Then China will take Taiwan. And then China will take Japan. And if they have to send two or three of our carrier groups to the bottom of the ocean to do it, they will.

[TGRR]

Originally Posted by grimrebuke

China is floating our economy because controlling the timing of our economic collapse is a strategic goal.

Um, no. When the USA goes belly up, so does China. China knows this.

[TGRR]

Originally Posted by grimrebuke

It is basic Sun Tzu, you fight when your enemy is weakest, and most distracted. China will, when they choose, stop buying and start selling US debt, probably at a loss... because they can afford to as a Communist state. And then a can of Budweiser will cost 100 bucks within a few months, and the people will go nuts. Congress will want to pass all kinds of restrictions on what businesses can charge for their products, riots will occur in the streets, many businesses will simply collapse. Crime will get out of control as people try to seize anything they can eat or sell. When unemployment breaks 60% our manufacturing base will be impotent. The military will be deployed state-side trying to stiffle the violence. Then China will take Taiwan. And then China will take Japan. And if they have to send two or three of our carrier groups to the bottom of the ocean to do it, they will.

China can't take Japan or Taiwan, period. Their navy is a sad joke, and they can't even keep their army supplied in PEACETIME.

And Taiwan is a fortress. I'm not sure WE could take it, without using nukes, and China won't nuke. What would be the point of "recapturing" a radioactive cinder?

[86Dude]

Originally Posted by TGRR

Um, no. When the USA goes belly up, so does China. China knows this.

Yeah, could you imagine the damage it would do to China in just 1 week?

WWIII would follow.

[TGRR]

Originally Posted by 86Dude

Yeah, could you imagine the damage it would do to China in just 1 week?

WWIII would follow.

Nope. Massive collapse and anarchy in China would follow.

No civilization survives it's entire population missing 3 meals in a row.

[86Dude]

Gonna need a war. Oh, and your analysis of Chinese offensive capabilities is dated.

[TGRR]

Originally Posted by 86Dude

Gonna need a war. Oh, and your analysis of Chinese offensive capabilities is dated.

Really? When did they rebuild their railway network? Or build another couple thousand miles of 6 lane highway?

Their logistics are a joke, and logistics are what win wars.

And they won't be able to wage a war. When the collapse comes, it will happen faster than even China can mobilize their army.

Basically, you'll have Road Warrior, but the gangs will have 1.5 Billion members (for about a week).

[86Dude]

If the U.S. goes belly, it's going to bring a lot more than China down. There is no way there wouldn't be some kind of war with somebody. Throw a dart. That's the jist of what I'm saying.

Anyway, I don't think China will nash it's teeth until they have us right where the want us say, 40 years from now when this place is an overpopulated shithole.